Amazon lays off thousands of corporate workers as it spends big on AI

Amazon is laying off thousands of corporate workers in an effort to slim down while it spends big on the AI race.

In a note on Tuesday, Amazon human-resources executive Beth Galetti said the tech giant would cut about 14,000 corporate jobs, or about 4% of its workforce. She cited a goal of "reducing bureaucracy, removing layers, and shifting resources to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs."

Amazon has faced intense pressure from investors to tighten its finances. The company had ballooned its workforce, including in corporate jobs, during the pandemic. And Amazon in July reported disappointing gains in its AI business; it's a dominant cloud-computing giant, but its growth in AI is lagging behind Microsoft and other rivals.