Amazon has confirmed plans to implement a major workforce reduction, eliminating roughly 10,000 corporate and technology roles worldwide as part of a broad restructuring effort aimed at streamlining operations and prioritizing investment in artificial intelligence.
A large portion of the layoffs will impact employees in Washington State, where the company is headquartered. In compliance with the Washington State Worker Adjustment and Retraining Notification (WARN) Act, Amazon filed a notice with the state’s Employment Security Department, disclosing that 4,375 positions in the region will be affected.
Streamlining for Long-Term Efficiency
In a statement, an Amazon spokesperson explained that the decision was made to reduce organizational complexity and focus resources on areas with the greatest long-term potential.
“We’re taking steps to simplify how we operate and direct our efforts toward what matters most – serving our customers and securing the long-term health of our business,” the spokesperson said.
The cuts will primarily target departments not directly tied to Amazon’s most critical initiatives, such as AI research, machine learning, and core infrastructure development.
Focus Shifts Toward Artificial Intelligence
The company emphasized that the restructuring will allow Amazon to “shift talent and resources to our most critical areas, including artificial intelligence.”
The move reflects a broader trend in the tech industry, where many companies are trimming traditional business units while ramping up investment in next-generation technologies. Amazon’s renewed emphasis on AI aligns with its strategy to expand capabilities across its retail, logistics, and cloud computing divisions, particularly within Amazon Web Services (AWS).
Support for Affected Employees
Amazon stated that affected workers will receive 60 days of pay and benefits, in addition to severance packages and career transition assistance.
The company said it is committed to helping employees navigate the transition process and explore other roles within Amazon or elsewhere in the tech sector.
Industry Context
Amazon’s layoffs come amid a broader wave of restructuring across major tech firms in 2025, as companies balance economic uncertainty with heavy investment in automation and AI-driven innovation.
Analysts note that while the move will reduce near-term headcount, it underscores Amazon’s intent to remain competitive in a rapidly evolving digital economy.
“Amazon is clearly doubling down on artificial intelligence as the foundation of its future growth,” said one industry analyst. “These cuts are part of a long-term pivot rather than a short-term reaction.”
Looking Ahead
Despite the layoffs, Amazon continues to invest heavily in key strategic areas, including AI-driven retail experiences, automation technologies, and next-generation logistics systems.
The company has not provided details on when the restructuring will be completed but indicated that the transition is already underway.
