Amazon job cuts hit hundreds as tech giant denies AI link
Amazon’s latest round of job cuts will affect hundreds of employees worldwide, City AM understands, as the tech giant continues to restructure its business following nearly 30,000 redundancies.
The company confirmed on Wednesday that it was reducing headcount across its Stores division, which oversees its core online retail operations, with employees in the UK, US and India among those affected.
While Amazon has not publicly disclosed the scale of the cuts, City AM understands the number of affected employees is in the hundreds, with only a handful impacted within its UK workforce.
The latest redundancies are also understood to be unrelated to AI, despite coming as Amazon invests heavily in the technology.
“We’re always looking at our team structures to ensure we’re best set up to move fast as we innovate for customers”, said an Amazon spokesperson.
“We’ve adjusted parts of our Stores business because we believe this structure will better enable us to deliver on our priorities”.
The company said it had made the “difficult decision” to eliminate a small number of roles and would support affected employees through the transition.
The reductions follow two much larger rounds of redundancies, with Amazon cutting around 14,000 corporate jobs in late 2025 and another 16,000 in January.
Those cuts spanned several divisions, including Amazon Web Services, as the company sought to reduce management layers and simplify its operations.
Layoffs mount amid AI investment boom
Amazon’s latest restructuring comes as tech companies continue to cut jobs while pouring billions into AI and infrastructure.
Several major firms have announced substantial redundancies this year, although the extent to which AI is responsible varies.
Oracle said in a regulatory filing that adopting AI had contributed to workforce reductions, while Microsoft and Meta have also cut thousands of jobs as they increase investment in the technology.
Amazon has continued recruiting in specialist areas, including AI and machine learning, even as it reduces headcount elsewhere.
The company has reportedly approached former employees about returning to its cloud division, including some affected by previous restructuring rounds.
Amazon founder Jeff Bezos attributed the company’s earlier job cuts to excessive hiring during the pandemic, when a surge in online shopping prompted the business to expand rapidly.
As demand returned to normal, Amazon was left with a larger workforce than it needed, he said in an interview with Fox News.
The latest cuts also coincide with Amazon’s Prime Big Deal Days shopping event, one of its biggest promotional periods of the year.
Amazon has maintained that its restructuring is intended to make the business faster and more efficient, rather than being driven by a single technology or a downturn in demand.