Amazon.com confirmed on Tuesday the layoff of 14,000 workers, in what is considered the first step of a broader restructuring that could affect some 30,000 corporate positions, according to sources close to the company. This is the largest reduction since 2022, when 27,000 jobs were eliminated. These measures are part of the tech giant's plan to cut costs and strengthen its financial position, according to the same sources. The cuts, which will be implemented gradually, represent about 10% of its corporate workforce and cover areas such as human resources, cloud computing, advertising, and internal services. Beth Galetti, Amazon's senior vice president, explained in an internal communication that the reduction aims to "make us stronger by removing unnecessary layers and redirecting resources toward our biggest bets and the current and future needs of our customers." The company will offer affected employees 90 days to find a new position within the company. The layoffs coincide with a popular trend among large US corporations, which are adjusting their workforce in the face of an uncertain economic environment. Persistent inflation, the increasing use of artificial intelligence, and global trade tensions have led companies like Meta, RTX, and Goldman Sachs to adopt more restrictive hiring policies.

Artificial intelligence redefines corporate strategies

Amazon CEO Andy Jassy has spearheaded a cost-containment strategy while increasing investments in artificial intelligence and cloud computing services. In a recent statement, Jassy noted that the advancement of generative AI will transform how the company operates and reduce the need for certain jobs.

“Implementing more AI and automated agents will change the way we work,” said Jassy, ????who believes these technological developments will decrease the overall workforce over time. The company is looking to optimize resources after a period of accelerated hiring during the pandemic. When the e-commerce boom doubled its warehouse network in just two years.

Amazon is scheduled to present its third-quarter financial results this Thursday.Analysts estimate that the layoff announcements are aimed at reassuring investors after a 7% drop in its stock price, triggered by slower growth in its cloud business compared to rivals such as Microsoft and Google.

In early October, the company unveiled advancements in automation, including the Blue Jay robotic arm, designed to operate in more compact urban warehouses and reduce reliance on human staff. It is also developing AI tools capable of anticipating customer preferences and recommending personalized products.

Currently, Amazon has a market capitalization of over two trillion dollars, driven largely by its investment in artificial intelligence. However, the consulting firm Bernstein recently warned that the company has yet to prove whether it will be a true “AI winner” or fall behind the competition.