(MENAFN) Amazon has confirmed plans to cut approximately 14,000 corporate jobs worldwide as part of a restructuring aimed at creating a leaner organization better positioned to capitalize on artificial intelligence (AI), according to reports. Earlier reports had suggested that up to 30,000 roles could be affected.

Beth Galetti, Amazon’s senior vice president, told staff that the changes are intended to make the company “even stronger” by reallocating resources toward the firm’s “biggest bets” and priorities for customer needs. She acknowledged that some may question the decision given Amazon’s strong financial performance but said it is necessary because AI is “the most transformative technology we’ve seen since the Internet” and is allowing companies to innovate faster than ever.

“We’re convicted that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,” Galetti wrote.

Amazon stated that it will provide support to affected employees, including assistance in finding other roles within the company and transition packages with severance pay for those who cannot be redeployed. The company has not yet clarified whether UK-based employees will be affected.

Amazon employs over 1.5 million people globally, including roughly 350,000 corporate staff in executive, managerial, and sales positions, according to government filings. Like many tech firms, the company expanded aggressively during the COVID-19 pandemic to meet a surge in demand for online deliveries and digital services.

Since then, CEO Andy Jassy has emphasized cost reduction and investment in AI tools to improve efficiency. In June, Jassy noted that AI adoption would likely lead to job reductions in some areas as machines take over routine tasks, while creating new roles in others.

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