Amazon to cut 16,000 roles as it looks to invest in AI, remove ‘bureaucracy’

Amazon said Wednesday it will cut approximately 16,000 roles across the company as part of an organizational overhaul aimed at reducing bureaucracy and cutting management layers, as the company continues to invest heavily in areas such as artificial intelligence.

In a message to employees, Beth Galetti, Amazon’s senior vice president of people experience and technology, said the reductions affect teams that were still finalizing restructuring efforts first announced in October.

Most U.S.-based employees whose roles are cut will be given 90 days to look for new positions internally, while those who do not transition will receive severance pay and other forms of support.

Galetti said the changes are not intended to signal a recurring cycle of broad workforce reductions and that Amazon will continue hiring in strategic areas. She said the company is looking "to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy."

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"We’re still in the early stages of building every one of our businesses and there’s significant opportunity ahead," she told employees.

"Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan. But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate," Galetti added. "That’s never been more important than it is today in a world that’s changing faster than ever."

This is a breaking news story; check back for updates.