Amazon is set to lay off 14,000 corporate employees by early 2025 as part of a cost-cutting initiative driven by artificial intelligence (AI), according to multiple reports. The e-commerce giant aims to save between $2.1 billion and $3.6 billion annually by reducing its managerial workforce by 13%, bringing the total number of managers down to approximately 91,936 from the current 105,770.
AI-Driven Job Cuts Spark Controversy
The move has drawn criticism from industry leaders. Gurmeet Chadha, Managing Partner and Chief Investment Officer (CIO) of Complete Circle, took to X (formerly Twitter) to voice his frustration, dismissing Amazon’s restructuring as corporate jargon.
“Amazon is laying off 10,000 more people after cutting 18,000 jobs in November. They call their HR heads ‘People Experience Head’ and ‘Chief People Officer,’ and employees ‘families’—sab drama!!” he wrote.
Chadha further emphasized his belief that technology should prioritize human welfare over profit. “Call me old school, but I value people more than anything else. Any innovation, as Guru Nanak Devji said, should keep people’s welfare (‘Sarbat da bhalla’) at the core.”
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Amazon’s Restructuring Plan
According to a Business Insider report from January 2025, Amazon has instructed some managers to take on more direct reports, scale back senior hiring, and reduce compensation for certain employees.
CEO Andy Jassy had previously outlined a plan in September 2024 to increase the ratio of individual contributors to managers by 15% by March 2025, aiming to reduce corporate bureaucracy and boost operational speed.
With AI playing a growing role in corporate decision-making, these layoffs mark a significant shift in Amazon’s management structure, potentially affecting thousands of employees.
Amazon shares fell 1.28% to $193.36 ahead of Tuesday’s Wall Street session, down from $195.74 at the previous U.S. market close.