Amazon layoffs to affect 14,000 jobs as CEO Andy Jassy taps AI to reduce costs

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Himalaya Harbinger, Rudrapur Bureau

Amazon.com Inc. has announced a second round of layoffs in as many years, after CEO Andy Jassy warned that AI will shrink the workforce of the second largest employer in the US.

The reductions we are sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets,” Beth Galetti, senior vice president of people experience and technology at Amazon, said in a blog post on Tuesday (28 October 2025).

The company will increase hiring in some parts of the business. The 14,000 number is the net reduction, Galetti said. Earlier today, Reuters reported that the Amazon layoffs could affect as many as 30,000 corporate jobs.

Why is Amazon laying off employees?

In June 2025, Amazon CEO Andy Jassy said that he expects the company’s workforce to decline in the next few years as the retail and cloud-computing giant uses AI to handle more tasks.

Agentic AI “should change the way our work is done”, Jassy had said in an email to employees then. “We will need fewer people doing some of the jobs that are being today, and more people doing other types of jobs.”

“It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”

As on 30 June, Amazon had about 1.55 million employees globally. It’s corporate workforce includes roughly 350,000 employees.

Which jobs will be affected by Amazon layoffs?

According to Bloomberg, the Amazon layoffs will show the most in logistics to payments and video games division, as well as Amazon Web Services that recently suffered an outage.

In recent months, Amazon has effected smaller job cuts across its books, devices as well as its services unit.

 

The company, which has for years prioritised automation in logistics, is now investing heavily in AI. These include an Alexa+ voice software, a shopping assistant, and AWS tools for developers and businesses. Amazon also uses AI tools for inventory placement, customer service and product listings.

 

Jassy has encouraged employees to “experiment with AI whenever you can”.

 

Amazon layoffs — from office to warehouse

Amazon is planning to replace more than half-a-million jobs in the US with robots, NYT reported earlier this month, citing internal strategy documents and interviews with executives as it readies for the next “big workplace shift”.

 

Amazon’s US workforce has more than tripled since 2018 to 1.2 million. But Amazon’s automation team believes the company can avoid hiring more than 160,000 people in the US it would otherwise need by 2027. That would save about 30 cents on each item that Amazon picks, packs and delivers.