Amazon has announced organisational changes that will affect approximately 14,000 corporate roles as part of an ongoing effort to โstrengthen culture and teamsโ and operate โlike the worldโs largest startup.โ
In an internal communication to employees, Beth Galetti, Senior Vice President of People Experience and Technology at Amazon said there will be reductions in some areas and new hiring in others, but the overall outcome will be a net reduction in workforce.
โThere will be communications from leaders to those teams and individuals today, but we also wanted to share the broader context about whatโs happening and why,โ Galetti wrote in the statement.
Leadership cites need for agility and fewer layers
Last year, Amazon Chief Executive Andy Jassy posted a note about strengthening the companyโs culture and teams, highlighting the need to reduce bureaucracy, streamline operations, and empower teams with greater ownership.
The company said it has already seen results from these efforts, with teams โmoving fasterโ and employees โfeeling more ownership.โ
โThe reductions weโre sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure weโre investing in our biggest bets and what matters most to our customersโ current and future needs,โ the statement said.
Affected employees offered internal mobility and support
Amazon said that impacted employees will receive 90 days to look for new internal roles, with recruiting teams prioritising internal candidates.
โWeโre working hard to support everyone whose role is impacted,โ the company said, adding that timing will vary depending on local laws.
For those unable to find new positions or who choose not to seek one, Amazon said it will provide severance pay, outplacement services, and continued health insurance benefits.
The company reaffirmed its intention to continue hiring in key strategic areas through 2026, while also pursuing further structural efficiencies.
โAs Andy talked about earlier this year, we expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership, and realise efficiency gains,โ the statement read.
AI cited as a major driver of organisational change
Amazon addressed potential concerns about job reductions amid strong business performance, saying that the changes reflect the pace of transformation in technology and markets.
โSome may ask why weโre reducing roles when the company is performing well. Across our businesses, weโre delivering great customer experiences every day, innovating at a rapid rate, and producing strong business results,โ the company noted.
It added that artificial intelligence represents a significant shift:
โThis generation of AI is the most transformative technology weโve seen since the Internet, and itโs enabling companies to innovate much faster than ever before. Weโre convinced 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.โ
โI donโt know of any other company with the breadth of Amazon, the number of exciting bold bets weโre making, and all the ways we can make customersโ lives better and easier around the world,โ the statement said. โIโm inspired by what I see across the company every day, and the S-team and I appreciate all that you do.โ
