Amazon has announced plans to lay off 14,000 corporate employees this year as part of a significant restructuring effort to align the company with the rapidly advancing field of artificial intelligence.

This strategic move is intended to streamline operations and prepare for wide-scale AI adoption.

The corporation has assured that it will continue hiring in crucial sectors, prioritizing those affected by the layoffs for these roles. Nevertheless, further workforce reductions remain on the horizon.

"We expect to continue hiring in key strategic areas while also identifying additional opportunities to eliminate layers, enhance ownership, and achieve efficiency gains," stated Beth Galetti, Amazon’s Senior Vice President of People Experience, in a memo shared with staff and posted on their public blog.

Reuters reported earlier that the total number of job cuts could reach up to 30,000. According to Galetti, Amazon needs a leaner operational model to realize CEO Andy Jassy's vision of running "the world’s biggest startup."

Jassy emphasizes agility as essential for adapting swiftly as AI reshapes the technology sector.

"It's imperative we acknowledge how quickly our world is evolving," Galetti explained. "The current wave of AI represents a transformative shift akin to the Internet revolution, enabling unprecedented rates of innovation.

We believe organizing more efficiently-with fewer hierarchical layers and increased ownership-will expedite our responsiveness for both customers and business goals."

Amazon's workforce comprises over 350,000 corporate employees globally, meaning these layoffs affect roughly five percent of its total headcount.

The reductions are set to commence Tuesday; impacted employees will have 90 days to seek new positions within Amazon.

Those unable to secure internal roles will receive severance packages along with additional support benefits.

In June, Jassy acknowledged in another communication that gains from AI could eventually lead to a smaller human workforce at Amazon: "As we deploy more Generative AI technologies and autonomous agents," he wrote, "our workflow dynamics will change significantly-requiring fewer individuals for some tasks while increasing demand for others."

Jassy further suggested that AI would revolutionize lifestyles globally beyond Amazon itself: “AI will transform work and life universally,” noting billions of potential applications across all industries.

Despite such bold predictions, experts caution much remains speculative about AI's full impact.

This isn't Amazon's first large-scale downsizing initiative; last year saw 27,000 positions eliminated across departments including Human Resources and Web Services due primarily to challenging global economic conditions cited by Jassy then.

Neil Saunders from GlobalData remarked Monday that these latest measures reflect ongoing efforts toward greater efficiency within Amazon: "Global markets are tightening simultaneously amidst rising fundamental costs," Saunders noted.

Amazon must act decisively now if it aims at sustaining robust bottom line outcomessignifying a pivotal shift towards technological infrastructures rather than human capital reliance."

The announcement coincides with growing unease within U.S labor markets particularly concerning young tech professionals amid fears generative AI might displace jobs via automation cost savings tactics although experts argue such apprehensions lack substantive research backing.-Akhbrna News