The job cuts come as Amazon CEO Andy Jassy has said he envisions the company relying on AI agents to replace human workers.

Retail job losses are surging, with Amazon and Target cutting nearly 32,000 corporate jobs combined, signaling a major industry restructuring.

"We're going to promote based on AI," said Amazon VP Jamie Simonoff. "We're going to promote based on how you're integrating AI into your job."

Amazon.com Inc. posted robust cloud growth that reassured investors that the tens of billions of dollars the company and its peers are pouring into artificial intelligence will pay off.

Amazon has faced pressure from investors to tighten its finances as it spends big on the AI race. The company says it will cut 14,000 jobs, citing a goal of "reducing bureaucracy, removing layers."

On Tuesday, Amazon laid off 14,000 employees in an effort to improve operations by removing layers of bureaucracy, according to a company announcement posted by Senior Vice President of People Experience and Technology, Beth Galetti.

In its financial results for the third quarter ending September 30, 2025, Amazon’s net sales climbed 13% year-over-year to $180.2 billion, up from $158.9 billion in the same period of 2024. Excluding foreign exchange tailwinds, sales were up 12%.

Amazon shares surged more than 11% in early trading on Friday after strong growth at its cloud unit and a bullish sales outlook eased fears that the tech giant was falling behind rivals in the AI race.

Amazon CFO Brian Olsavsky shared that the company has increased its full-year capital expenditure projections to $125 billion. The company had previously guided for $100 billion in the June quarter. Olsavsky expects the number to be even higher in 2026.

The Wall Street Journal is reporting that the biggest firms in Silicon Valley have invested $400 billion into artificial intelligence technology just this year. Tech companies like Meta, Alphabet, Microsoft and Amazing are expected to increase their investment in AI next year.