(MENAFN) Amazon announced Tuesday it will slash roughly 14,000 corporate positions as part of an extensive restructuring initiative aimed at cutting red tape, streamlining operations, and ramping up investments in artificial intelligence (AI).

The layoffs represent the company’s second-largest workforce reduction in history, following a 2022 downsizing that eliminated about 22,000 roles.

In an internal memo, Beth Galetti, Amazon’s senior vice president of people experience and technology, said the decision is designed to strengthen the company by channeling resources into its most promising ventures. She wrote that the changes will make the company “even stronger” and allow it to focus on its “biggest bets.”

“This generation of AI is the most transformative technology we've seen since the Internet,” Galetti said, noting that it is helping businesses innovate at unprecedented speed across both existing and emerging markets.

In a separate memo from June, Amazon CEO Andy Jassy signaled that the company’s growing use of AI tools would likely reduce its staffing needs. “As we roll out more Generative AI and agents, it should change the way our work is done,” Jassy wrote. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”

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