Amazon will cut 14,000 corporate roles, nods to AI-driven changes

Amazon on Tuesday said it would cut 14,000 corporate roles, in an effort to thin out bureaucracy and be more flexible in an AI-driven era. Why it matters: Big companies are starting to cut back headquarters positions in an uncertain economy, where AI is increasingly capable of supplanting many roles. What they're saying: "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 senior vice president Beth Galetti wrote in a blog post."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."Galetti also noted the company would continue hiring in some areas in 2026, while making cuts in others. Yes, but: The cuts, while significant, are much smaller than first expected.Some reports Monday suggested the figure could be as high as 30,000 positions. They come alongside reported significant corporate layoffs this week in retail (Target) and media (Paramount Skydance). Of note: Amazon — a company with a history of being heavily focused on efficiency — mentioned a desire to remove "layers" four time,s and to increase "ownership" five times, in the 500-word post.The big picture: By and large, AI isn't the primary driver of layoffs — yet.But as some AI leaders warn of a white-collar bloodbath in the coming years, CEOs privately acknowledge the technology is making them rethink hiring. For many big companies, the default approach to resource needs is shifting to hiring as the last resort, instead of as the first option. By the numbers: Investors took the news in stride, with Amazon shares up about 0.6% in premarket trading.Its stock is up about 3.5% this year, far underperforming its peers in the "Magnificent 7". The bottom line: Amazon's not the first company to nod at bureaucracy slowing down change in the AI era, and it won't be the last.Editor's note: This story has been updated with background on the layoffs.

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