The plan offers the majority of displaced employees a 90-day window to seek other jobs inside Amazon, though the exact period may vary to comply with local regulations. Galetti added that recruiting teams will prioritize internal candidates to improve the chances that affected workers can remain with the company.
For individuals who do not secure a new post or opt not to pursue one, Amazon will provide severance pay, outplacement services, continued health-care benefits and additional transition support. Details on specific financial terms were not disclosed in the memo.
Although the company is cutting staff overall, Galetti emphasized that Amazon will “continue hiring in key strategic areas” while examining additional opportunities to “remove layers, increase ownership, and realize efficiency gains.” No information was given about which business units will see new hiring or which will bear the heaviest reductions.
Amazon’s latest round of job cuts follows multiple waves of technology layoffs across the industry over the past two years, as firms have adjusted to slower growth and shifting consumer habits. U.S. government data show that the information sector recorded higher layoff rates in 2024 than the national average, according to figures from the Bureau of Labor Statistics.
In the memo, Galetti framed the reorganization as critical to maintaining speed of execution. “The world is changing quickly,” she wrote, adding that the company must be “organized more leanly, with fewer layers and more ownership.” She also cited Amazon’s range of “bold bets” as evidence of the scale at which the firm can continue to improve customer experience despite a smaller corporate workforce.
The company did not release geographic or departmental breakdowns of the 14,000 affected roles. Amazon’s corporate staff spans e-commerce, cloud computing, advertising, devices, entertainment and numerous support functions.
Imagem: Internet
Tuesday’s announcement did not mention any changes to warehouse, delivery or hourly positions, which make up the bulk of Amazon’s total global head count. The company employed more than 1.5 million full- and part-time workers worldwide at last count, including its corporate workforce.
Internal notifications are scheduled to be completed before the end of the business day, after which workers eligible for the 90-day placement period can begin applying for open roles. Employees outside the United States will receive country-specific guidance that aligns with regional employment laws.
Amazon stated that cost savings from reduced bureaucracy and lower personnel expenses will be directed toward products and services with the highest potential return. Galetti’s note did not specify which initiatives fall into that category but reiterated the priority of “investing in our biggest bets.”
The company last conducted a major workforce reduction in early 2024, when it cut roughly 9,000 positions in human resources, advertising and cloud computing. Combined with the new measures, Amazon will have announced the elimination of more than 23,000 corporate roles in less than two years.
Amazon is scheduled to report third-quarter earnings next week. Analysts will be watching for any indication of how the restructuring might influence operating margins and capital allocation.
No timeline was provided for the full completion of the latest job reductions. However, Galetti wrote that leadership wants “to move as quickly as possible” to finalize the changes and give employees clarity about their future at the company.
Crédito da imagem: Dado Ruvic/Reuters
