The U.S. AI layoff trend intensified as Amazon announced it will cut about 14,000 corporate employees—roughly 4% of its workforce—in a major effort to streamline operations and redirect resources toward artificial intelligence. The move highlights Amazon’s push to stay competitive in the rapidly evolving AI landscape while responding to investor demands for tighter cost control.

In a company memo, Beth Galetti, Amazon’s senior vice president of human resources, said the layoffs were meant to “reduce bureaucracy, remove layers, and shift resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs.”

The U.S. AI layoff trend is accelerating as Amazon boosts spending on AI infrastructure and cloud development. Although AWS remains a leader in cloud computing, the company has struggled to keep pace with AI advances made by competitors like Microsoft and Google. The July earnings report reflected slower-than-expected growth in Amazon’s AI-related divisions.

CEO Andy Jassy has repeatedly signaled that artificial intelligence will reshape Amazon’s workforce. In a memo from June, he wrote: “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.” Jassy noted that AI-driven efficiencies could reduce corporate staffing levels over time.

Operational setbacks have increased the pressure. A major AWS outage last week disrupted major platforms including Venmo, Reddit, Roblox, and Duolingo, raising concerns about Amazon’s infrastructure stability. The company will release its next quarterly earnings on Thursday, offering more insight into how restructuring affects profitability and AI investment.

Amazon had grown rapidly during the pandemic, adding tens of thousands of corporate workers to meet unprecedented e-commerce demand. Now, with growth slowing and competition intensifying, Amazon is focused on cutting what analysts call “organizational bloat.” Insiders suggest as many as 30,000 jobs across divisions such as HR and cloud services may ultimately be affected by the U.S. AI layoff trend.

Industrywide restructuring adds context. Starbucks recently cut nearly 2,000 corporate roles, and Target is eliminating 1,800 positions as both companies work to manage costs. These moves signal a broader transition across sectors as labor expenses are increasingly offset by automation and emerging technologies.

As Amazon concentrates on AI to secure long-term advantage, its restructuring reflects a common trade-off: fewer traditional roles in exchange for greater investment in automation and machine learning. The next few quarters will reveal whether this shift supports sustained growth or contributes to new instability for one of the world’s largest employers.