Amazon has confirmed it plans to cut thousands of jobs, saying it needs to be organized more leanly to seize the opportunity provided by artificial intelligence (AI).
The tech giant stated on Tuesday it would reduce its global corporate workforce by approximately 14,000 roles.
Earlier reporting had suggested it was planning to lay off as many as 30,000 workers.
Beth Galetti, a senior vice president at Amazon, wrote in a note to staff that the move would make the company even stronger by shifting resources to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs.
She acknowledged that some would question the move, given the company was performing well.
At the end of July, Amazon reported second quarter results that exceeded Wall Street expectations, including a 13% year-over-year increase in sales to $167.7bn (£125bn).
However, Ms. Galetti stated that the cuts were necessary because AI is the most transformative technology we've seen since the Internet and is enabling companies to innovate much faster than ever before.
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 added.
The note shared with Amazon employees earlier stated the company was working hard to support everyone whose role is impacted—including efforts to help those affected find new roles within Amazon.
For those unable to transition, transition support including severance pay will be provided.
The BBC has reached out to inquire if these layoffs will affect employees in the UK.
Amazon has more than 1.5 million employees globally across its warehouses and offices, including approximately 350,000 corporate workers in executive, managerial, and sales roles.
Similar to other tech firms, Amazon had ramped up hiring during the COVID-19 pandemic to meet the surge in demand for online deliveries and digital services.
CEO Andy Jassy has since focused on reducing spending while investing heavily in AI tools to improve efficiency.
In June, Mr. Jassy indicated that the increase in AI tools would likely lead to job reductions as machines take over routine tasks.
We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs, he stated at the time.
Amazon has performed several rounds of cuts to its corporate division in recent years, including around 27,000 workers laid off over several months in 2022, as rivals also sought to reverse pandemic-era hiring increases.
Despite strong financial performance, analysts expressed concerns regarding the long-term value of Amazon's substantial investments in AI.
Slower growth of its cloud business, Amazon Web Services (AWS), compared to competitors like Microsoft and Google has also raised investor concerns.
Amazon is set to release its latest quarterly results on Thursday for the period ending 30 September.
