Amazon to cut 14,000 jobs. Credit - or blame - goes to AI.

By Steve Goldstein

Amazon announced job cuts on Tuesday.

Amazon.com on Tuesday announced job cuts of 14,000, as the megacap tech company said it needs to better prepare for the impact of artificial intelligence.

"Some may ask why we're reducing roles when the company is performing well," said Beth Galetti, senior vice president of people experience and technology at Amazon, in a blog post.

"What we need to remember is that 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)."

Amazon is convinced that it needs to be organized more leanly, with fewer layers and more ownership, "to move as quickly as possible for our customers and business," she said.

The number of job cuts is actually less than the 30,000 reduction that Reuters reported late on Monday that Amazon was considering.

Amazon shares (AMZN) rose 0.5% in premarket trade.

The stock has gained just 3% this year, below the 24% advance for the broader Magnificent Seven cohort.

Amazon is due to report its third-quarter earnings after the close on Thursday.

-Steve Goldstein

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10-28-25 0618ET