Amazon.com Inc (NASDAQ:AMZN) announced on Tuesday that it will eliminate the jobs of about 14,000 corporate employees as the company increases its spending on artificial intelligence (AI).
The job reductions could eventually affect as many as 30,000 employees, Reuters reported, citing sources familiar with the matter.
“This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones),” Beth Galetti, senior vice president of people experience and technology at Amazon, wrote in a blog post.
“We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and businesses.”
Amazon CEO Andy Jassy had stated previously that he anticipates generative AI would reduce Amazon’s corporate workforce in the next few years.
The 14,000 employees affected represent about 4% of Amazon’s corporate and tech workforce.
The company also indicated that layoffs will continue in the coming year, even as it plans to keep hiring in “key strategic areas.”
Amazon is the second-largest private employer in the US, with more than 1.54 million employees globally as of the end of the second quarter.
The company is set to report its third-quarter financial results on October 30 after the market closes.