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Amazon has outlined plans to cut 14,000 jobs across its corporate workforce, as the company looks to cut costs amid increased spending on artificial intelligence.
In a message to employees on Tuesday, Beth Galetti, a senior executive at the Seattle-based tech group, said Amazon needed to be “organised more leanly” to capitalise on the opportunities from AI.
The job cuts amid Amazon’s office-based staff come as chief executive Andy Jassy oversees a cost-cutting effort, having this year taken an axe to middle management to ensure the business could operate “like the world’s largest start-up”.
“We’re convicted that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,” Galetti said.
In June, Jassy said advancements in AI would “reduce” the company’s corporate headcount over the next few years.
As of December 31 2024, the company employed about 1.5mn full-time and part-time staff across its global workforce, including drivers and couriers.