Amazon Lays Off 14,000 Employees Despite Huge Profits

Amazon has announced another major round of layoffs, affecting nearly 14,000 corporate employees, marking its largest job cut since the pandemic. These layoffs represent about 4% of Amazon’s 350,000 white-collar workforce, even as the company posted a massive $18 billion in quarterly profits.

The termination emails were sent on the morning of October 28 by Beth Galetti, Senior Vice President of People Experience & Technology at Amazon. In her message to affected workers, Galetti said, “I’m personally committed to making sure you get the help you need as you navigate this change.”

According to Business Insider, employees received detailed instructions regarding severance pay, benefits, and next steps. The email informed them that their badge access had been restricted and security would help them leave the building if necessary.

Each affected employee will receive 90 days of full pay and benefits, along with a severance package, transitional support, and job placement assistance. The HR chief also encouraged employees to access internal support systems through Amazon’s “A to Z” app.

Despite strong financial results, the company cited artificial intelligence (AI) as a key reason behind the decision. Galetti explained that Amazon is shifting its focus toward AI development and aims to reduce bureaucracy and flatten management layers.

Amazon CEO Andy Jassy had earlier warned that AI advancements would reduce the need for certain corporate roles, as automation improves efficiency. The company now plans to invest more in AI and cloud infrastructure, with capital expenditures set to exceed $120 billion in 2025, up nearly 50% from last year.

Reports from Reuters and The New York Times suggest that this may not be the end of job cuts at Amazon. Sources say another round of layoffs could come in January 2026, after the holiday shopping season.

These developments come amid growing concern in the tech industry, where companies are using AI to streamline operations but at the cost of thousands of jobs worldwide.