Amazon has announced plans to lay off approximately 14,000 corporate employees as it increases its investment in artificial intelligence. This decision comes as the company seeks to streamline operations and reduce costs. CEO Andy Jassy, who has focused on cost-cutting since taking the helm in 2021, indicated in June that generative AI could lead to a reduction in the corporate workforce over the next few years. At that time, he noted that Amazon was developing over 1,000 generative AI services and applications, although this number represents only a small portion of future plans. Jassy has urged employees to embrace the company's AI initiatives. Earlier this month, Amazon revealed a $10 billion investment to build a new campus in North Carolina, aimed at enhancing its cloud computing and AI capabilities. Since the beginning of 2024, the company has committed similar amounts to data center projects in Mississippi, Indiana, Ohio, and North Carolina, as it strives to compete with other tech giants in the growing AI market. In a May conference call, Jassy highlighted the significant growth potential for Amazon Web Services (AWS). He stated, "If you believe your mission is to make customers’ lives easier and better every day, and you believe that every customer experience will be reinvented with AI, you’re going to invest very aggressively in AI, and that’s what we’re doing." On Tuesday, Amazon communicated its plans to reduce bureaucracy within the organization. Beth Galetti, Senior Vice President of People Experience and Technology, explained in a message to employees that the layoffs are part of ongoing efforts to strengthen the company by eliminating unnecessary layers and reallocating resources. Affected employees will be notified on Tuesday, with most given 90 days to seek new positions within the company. For those unable to find new roles or who choose not to pursue them, Amazon will offer transitional support, including severance pay, outplacement services, and health insurance benefits. With around 350,000 corporate employees and a total workforce of approximately 1.56 million, the layoffs represent about a 4% reduction in Amazon's corporate staff. The company’s workforce had doubled during the pandemic as online shopping surged, but many tech and retail firms have since reduced their headcounts to align with spending. This latest round of layoffs marks the largest at Amazon since 2023, when the company cut 27,000 jobs in multiple phases. Amazon has not disclosed whether further layoffs are anticipated. Neil Saunders, managing director of GlobalData, commented that these layoffs signify a significant restructuring of Amazon's corporate workforce. He noted, "Unlike the Target layoffs, Amazon is operating from a position of strength. The company has been producing good growth, and it still has a lot of headroom for further expansion in both the U.S. and overseas." However, Saunders cautioned that Amazon must adapt to external pressures, including tightening global markets and rising costs. He stated, "It needs to act if it wants to continue with a good bottom line performance. This is especially so given the amount of investment the company is making in areas like logistics and AI." Amazon is set to release its quarterly financial results on Thursday. In its most recent quarter, the company reported a 17.5% growth in its cloud computing division, AWS.