WASHINGTON : In a note to staff on Tuesday, Beth Galetti, Amazon’s Senior Vice President, said the decision was part of efforts to position the company for long-term success by reallocating resources toward its biggest priorities.

“We’re convicted that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,” Galetti wrote, adding that AI represented “the most transformative technology since the Internet.”

The layoffs, representing a fraction of Amazon’s 1.5 million-strong global workforce, will primarily affect its corporate division, which employs around 350,000 workers. The company said those impacted will be offered severance pay and assistance in finding new roles within Amazon.

While the company continues to post solid financial results, executives say the move is critical to remain competitive as AI reshapes industries. Amazon CEO Andy Jassy had previously hinted that AI-driven automation would reduce the need for certain roles, as the company pours investment into machine learning and cloud-based AI tools to improve efficiency and customer experience.

Amazon, which expanded aggressively during the Covid-19 pandemic to meet soaring online demand, has since shifted its focus to cost-cutting and innovation. “We’re investing in what matters most to our customers’ current and future needs,” Galetti noted, underscoring that the restructuring is designed to make Amazon “even stronger” in the long run.

Despite the significant cuts, the company said it remains committed to supporting affected employees through the transition as it repositions itself for the next wave of technological change.