Amazon has announced a new plan to restructure its teams, which includes reducing approximately 14,000 administrative positions as part of efforts to enhance efficiency and reduce bureaucracy in preparation for a new expansion driven by artificial intelligence technologies.
Beth Galetti, Senior Vice President of People, stated in an internal message that these changes aim to “increase agility and strengthen teams” by reducing some administrative layers and focusing resources on the most important areas to meet current and future customer needs.
Galetti confirmed that this decision is not related to weak financial performance, as Amazon continues to achieve strong results and deliver exceptional customer experiences. However, she emphasized the importance of adapting to the rapid transformations brought about by artificial intelligence, which she described as “the most transformative technology since the advent of the internet”.
Additionally, Amazon stated on its official website that it will provide severance pay for employees who are unable to find new roles or choose not to look for them, along with health insurance benefits.
She concluded by noting that Amazon will continue hiring in strategic areas while making cuts in other departments, indicating that affected employees will have 90 days to search for internal roles, with hiring teams prioritizing internal candidates.
