Amazon will cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence.
In June CEO Andy Jassy, who has aggressively sought to cut costs since becoming CEO in 2021, said that he anticipated would reduce Amazon’s corporate workforce in the next few years.
Jassy said at the time that Amazon had more than 1,000 generative AI services and applications in progress or built, but that figure was a “small fraction” of what it plans to build.
Jassy encouraged employees to get on board with the company’s AI plans and a month later, Amazon announced multi-billion dollar investments to expand cloud infrastructure and advance AI innovation in North Carolina, Pennsylvania, and Australia.
On Tuesday, the online giant said it was reducing bureaucracy.
“The reductions we’re 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 and what matters most to our customers’ current and future needs,” Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, said in message to employees Tuesday.
Teams and individuals impacted by the job cuts will be notified on Tuesday.
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