‘The world is changing’: Amazon announces 14,000 layoffs ahead of the holidays, cites AI innovation

Amazon announced it will lay off approximately 14,000 employees according to a memo released by Senior Vice President Beth Galetti. These layoffs are part of CEO Andy Jassy's initiative to strengthen Amazon's culture by reducing bureaucracy and shifting resources. While the memo cites AI as a factor driving the need for a leaner operation, sources indicate it's not the primary cause of the layoffs. Experts are saying these layoffs represent one of the largest single layoff rounds of 2025. Although the cuts will primarily affect the corporate workforce, Amazon is expected to hire in key areas in 2026 and will seek additional areas to cut staff. Galetti suggested the company needs to be leaner with fewer layers to adapt to the rapidly changing world in which they are operating. While layoffs can boost companies' bottom line, Amazon's stock price remained relatively flat following the announcement. This is occurring despite the Nasdaq seeing a 21% gain for the year. Amazon is scheduled to share its third-quarter 2025 financial results on October 30.