Amazon to reduce workforce by 14,000 roles in corporate restructuring
Amazon Web Services Inc. (NASDAQ: AMZN) announced it will eliminate approximately 14,000 corporate roles as part of organizational changes aimed at reducing bureaucracy and management layers.
The company stated in an internal message to employees that the reductions represent a continuation of efforts to operate with increased speed and ownership while shifting resources toward priority investments and customer needs.
Amazon will provide affected employees with 90 days to seek internal positions, with timing varying based on local regulations. The company's recruiting teams will prioritize internal candidates during this transition period.
Employees unable to secure new roles within Amazon will receive severance pay, outplacement services, health insurance benefits and additional transition support, according to the announcement.
The restructuring involves both workforce reductions in certain areas and continued hiring in strategic segments. Amazon indicated it expects to maintain this approach through 2026, continuing to hire in key areas while identifying additional opportunities to reduce management layers.
The company attributed the changes to rapidly evolving market conditions and the transformative impact of artificial intelligence technology, stating the need for a leaner organizational structure to maintain competitive speed.
Amazon described its current business performance as strong, noting it continues to deliver customer experiences, innovate and produce positive business results across its operations.