This decision comes as the company seeks to reduce bureaucracy, remove layers and invest more in its AI strategy. As of October 31, 2024, Amazon had nearly 1.2 million employees, of whom more than 360,000 worked in the corporate division, holding administrative, sales, and management positions.
In a memo shared with employees, Beth Galetti, senior vice president of people experience and technology at Amazon, wrote that the move is aimed at making the company “even stronger” by shifting resources to invest in its “biggest bets.”
Galetti acknowledged that the decision would be questioned in light of the company’s good performance, but argued that the layoffs are necessary because the “world is changing quickly.”
“This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). We’re convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,” – she wrote.
The layoffs come at a time when Amazon is investing heavily in technology infrastructure to increase computing power for its artificial intelligence (AI) services.
According to October 21th, 2025 article and The New York Times reports, citing interviews and internal strategy documents, that Amazon expects with its robots to replace more than 600,000 jobs in the United States.
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