Big shake-up at Amazon

Faced with increasing pressure to invest in AI, Amazon launched a sweeping restructuring, cutting 14,000 jobs to optimize costs and maintain competitive advantage.

Amazon is cutting staff on a large scale. Photo: Bloomberg .

Amazon has announced 14,000 layoffs, the first step in a plan that could affect 30,000 jobs, or about 10% of its workforce. This is the e-commerce giant's latest effort to reduce costs and restructure amid growing spending on AI.

The layoffs, announced on October 28, affect multiple departments, including human resources, cloud computing, advertising, and other business units. In an internal memo, Senior Vice President Beth Galetti said the cuts were necessary to make Amazon stronger and focus resources on strategic priorities. She also confirmed that affected employees will have 90 days to find new positions internally.

The move follows a trend of layoffs by major US corporations, as many seek to control costs amid inflation, a tightening labor market and the widespread adoption of AI. Amazon previously laid off 27,000 employees in 2022, the largest layoff in the company's history.

CEO Andy Jassy is leading a comprehensive restructuring campaign to move toward a “resource-maximizing” model. He said the deployment of generative AI and autonomous robots could change the way Amazon operates and reduce the need for human resources in some areas. Amazon recently introduced the Blue Jay robot and AI tools to predict customer shopping behavior.

Observers say the decision to cut back reflects competitive pressure in cloud computing, Amazon’s core business. Despite strong sales and profits in the second quarter of 2025, Amazon shares fell 7% on concerns that the company was falling behind in the AI ​​race.

Recent earnings results raise questions about how Amazon is staying ahead in the AI ​​race, according to Bernstein analysts. But with a market capitalization of more than $2 trillion and plans to invest more than $30 billion in AI and cloud computing this year, the e-commerce giant remains one of the most influential tech giants in the world.

Source: https://znews.vn/bien-dong-lon-tai-amazon-post1598060.html