US tech giant Amazon plans to cut around 14,000 corporate jobs as it increases spending on artificial intelligence (AI) while cutting costs elsewhere.
The online retail giant’s management will notify departments and individuals who will be affected by the job cuts, the AP reported.
“Most employees will have 90 days to search within the company for a new position,” Amazon’s senior vice president of human experience and technology, Beth Galetta, wrote in a letter to employees today.
Those who are unable to find a new role at the company or choose not to seek one will receive transitional support, including severance pay, relocation services and health insurance, according to the statement.
Amazon has about 350,000 corporate employees and a total workforce of approximately 1.56 million people, and the cuts announced today represent a share of the total workforce of about four percent.
Chief Executive Officer Andy Jassy, who has aggressively sought to cut costs since becoming CEO in 2021, said in June that he expects generative artificial intelligence to reduce Amazon’s corporate workforce in the coming years.