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Amazon Confirms 14,000 Corporate Layoffs as It Ramps Up AI Infrastructure

The company frames the reductions as streamlining to fund its biggest artificial intelligence bets.

Overview

  • State filings show more than 1,400 roles will be cut in California, including over 600 across Bay Area offices in Sunnyvale, Palo Alto, and Santa Clara, with notices citing Jan. 26 as the effective date.
  • Affected employees were told they will receive 90 days of pay and benefits along with a severance package, according to an internal memo from HR chief Beth Galetti.
  • Workers described early-morning text and email notifications and abrupt on-site exits with laptops collected immediately, according to social media posts and reports.
  • Amazon Web Services activated Project Rainier, an $11 billion AI data center in Indiana that is already running more than 500,000 Tranium 2 chips and is slated to double in scale by year-end, with cloud chief Matt Garman saying he feels "quite good" about the investments.
  • Reuters has reported the total cuts could ultimately reach as many as 30,000 positions, while the confirmed reductions equal roughly 4% of Amazon’s 350,000 corporate headcount.