- To invest $10 billion in AI infrastructure
- In biggest cut since 2023, company aims to shift focus from workforce to technology
Amazon has announced plans to cut about 4% of its workforce, or about 14,000 corporate positions, to sharply increase investment in artificial intelligence and cloud computing. The decision, part of CEO Andy Gess’ ongoing cost-cutting measures, aims to streamline operations, reduce bureaucracy and redirect resources to the company’s most promising areas, particularly AI and infrastructure development. The job cuts highlight a broader industry shift as tech leaders balance human resources with automation and AI-based capabilities.
Since taking office in 2021, Andy Gess has consistently emphasized the managerial capabilities of artificial intelligence as the future of Amazon’s business. In June, JC said that the emergence of generative AI will undoubtedly reduce the size of the corporate workforce. He added that Amazon has built or is building more than a thousand AI applications, which is just one part of its plan. He made it clear that AI will enhance every customer experience, for which he gave examples of Alexa Plus and Amazon’s modern virtual assistant.
The company’s AI expansion is backed by massive infrastructure investments. In 2025 alone, Amazon has committed to investing nearly $10 billion each in data center projects in Mississippi, Indiana, Ohio and North Carolina, where it is also building a $10 billion campus to develop its AI and cloud computing backbone. These efforts are part of Amazon’s strategy to compete with industry leaders such as Open AI, Google and Microsoft in the rapidly growing AI space.
Beth Galetti, Amazon’s senior vice president of People Experience and Technology, explained that the layoffs are part of an effort to reduce bureaucracy, reduce layers, and shift resources. Affected employees will be given 90 days to find new internal roles, and those who are unable to do so will be provided with job search assistance and health benefits.
Amazon currently has more than 1.5 million employees globally, of which 3.5 million are in corporate roles. The current layoffs are the largest since 2023, when 27,000 jobs were cut. Analysts see the move as a cleanup rather than a response to the crisis, given Amazon’s strong financial position. In their opinion, Amazon is simply shifting focus from human capital to technological infrastructure.
