Amazon confirms major corporate layoffs as AI integration reshapes workforce
TOI World Desk | TIMESOFINDIA.COM | Jun 20, 2025, 22:43 IST
Laid Off, Moving On
( Image credit : TIL Creatives )
Amazon is strategically reducing its corporate workforce over the coming years, driven by the increasing integration of artificial intelligence across its operations. CEO Andy Jassy confirmed that roles in customer service, software development, HR, and middle management are being phased out as AI tools automate routine tasks.
Amazon is set to gradually reduce its corporate workforce over the next few years, as the company accelerates its adoption of artificial intelligence across operations. In an internal memo dated June 18, CEO Andy Jassy confirmed that roles in customer service, software development, human resources, and middle management are likely to be phased out as AI tools take over routine tasks.
The memo, first reported by Business Insider, emphasized that the move is part of a long-term strategy to restructure operations for greater efficiency, not simply a cost-cutting measure. Jassy noted that more than 1,000 AI tools are already in use across the company, supporting everything from inventory forecasting to automated customer support. As a result, traditional roles that rely on repetitive or rule-based tasks are increasingly becoming obsolete.
Customer service and software development teams are among the most affected. Amazon has implemented generative AI systems that can handle customer inquiries and write code, reducing the need for large human teams. The Alexa division is also undergoing significant restructuring, with sources indicating substantial job cuts planned for 2025 as the voice assistant relies more on advanced AI models.
Middle management has been particularly impacted, with approximately 14,000 managerial roles eliminated so far in 2025, according to internal sources. The company is moving toward a flatter organizational structure enabled by faster, AI-driven decision-making processes. Administrative positions in HR, compliance, and internal communications are also being downsized due to automation capabilities.
Industry-wide, AI-related job reductions are growing. Data from Challenger, Gray & Christmas shows that approximately 20,000 layoffs during the first five months of 2025 were directly linked to automation. A report by Goldman Sachs last year projected that AI could automate up to 25% of all jobs across sectors, a forecast that is now unfolding rapidly.
Jassy made it clear that the changes are not prompted by financial strain but are part of a broader shift in how Amazon operates. The company has enacted hiring freezes in various departments and is relying more on attrition and internal role transitions rather than sweeping layoffs. However, some business units—such as Alexa, Kindle, and Prime Video—have seen direct terminations.
Amazon is investing heavily in AI infrastructure, budgeting $105 billion primarily for AWS-related development, as it competes with other tech giants such as Microsoft, which is allocating $80 billion for similar initiatives. The broader goal, according to Jassy, is to redirect workforce efforts from routine tasks to roles that support innovation, strategy, and product development.
Employees are being encouraged to adopt internal AI tools like Bedrock, Claude, and Sonnet, and to participate in upskilling programs focused on data analysis, AI integration, and workflow automation. Teams involved in building or managing AI infrastructure are currently expanding, offering a potential path forward for workers willing to pivot.
The layoffs at Amazon reflect a wider trend across the tech industry, as companies adjust to an era where AI is no longer a support tool but a central driver of business operations.
The memo, first reported by Business Insider, emphasized that the move is part of a long-term strategy to restructure operations for greater efficiency, not simply a cost-cutting measure. Jassy noted that more than 1,000 AI tools are already in use across the company, supporting everything from inventory forecasting to automated customer support. As a result, traditional roles that rely on repetitive or rule-based tasks are increasingly becoming obsolete.
Customer service and software development teams are among the most affected. Amazon has implemented generative AI systems that can handle customer inquiries and write code, reducing the need for large human teams. The Alexa division is also undergoing significant restructuring, with sources indicating substantial job cuts planned for 2025 as the voice assistant relies more on advanced AI models.
Middle management has been particularly impacted, with approximately 14,000 managerial roles eliminated so far in 2025, according to internal sources. The company is moving toward a flatter organizational structure enabled by faster, AI-driven decision-making processes. Administrative positions in HR, compliance, and internal communications are also being downsized due to automation capabilities.
Industry-wide, AI-related job reductions are growing. Data from Challenger, Gray & Christmas shows that approximately 20,000 layoffs during the first five months of 2025 were directly linked to automation. A report by Goldman Sachs last year projected that AI could automate up to 25% of all jobs across sectors, a forecast that is now unfolding rapidly.
Jassy made it clear that the changes are not prompted by financial strain but are part of a broader shift in how Amazon operates. The company has enacted hiring freezes in various departments and is relying more on attrition and internal role transitions rather than sweeping layoffs. However, some business units—such as Alexa, Kindle, and Prime Video—have seen direct terminations.
Amazon is investing heavily in AI infrastructure, budgeting $105 billion primarily for AWS-related development, as it competes with other tech giants such as Microsoft, which is allocating $80 billion for similar initiatives. The broader goal, according to Jassy, is to redirect workforce efforts from routine tasks to roles that support innovation, strategy, and product development.
Employees are being encouraged to adopt internal AI tools like Bedrock, Claude, and Sonnet, and to participate in upskilling programs focused on data analysis, AI integration, and workflow automation. Teams involved in building or managing AI infrastructure are currently expanding, offering a potential path forward for workers willing to pivot.
The layoffs at Amazon reflect a wider trend across the tech industry, as companies adjust to an era where AI is no longer a support tool but a central driver of business operations.