Amazon Lays Off Thousands of Employees Through Early-Morning Text Messages Amid AI-Driven Restructuring

Amazon employees faced an unexpected shock Tuesday morning when thousands received text messages announcing their termination before their workday even began.

According to Business Insider, which reviewed screenshots and spoke with sources familiar with the situation, affected workers received messages directing them to check personal or work emails or contact a help desk regarding their employment status.

This wave of layoffs follows Amazon's announcement of approximately 14,000 corporate position cuts as part of a major restructuring effort focused on efficiency and expanding artificial intelligence capabilities.

The majority of impacted U.S. employees held retail management positions. Beth Galetti, Amazon's HR head, communicated through an internal Slack memo that terminated employees would receive full compensation and benefits for 90 days plus additional severance packages.

In a Tuesday blog post, Galetti attributed the workforce reductions to rapid advancements in artificial intelligence technology, noting these changes were occurring despite Amazon's strong overall business performance.

"What we need to remember is that the world is changing quickly. This generation of AI is the most transformative technology we've seen since the Internet, and it's enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones)," she explained.

Over recent years, Amazon has implemented various streamlining measures including reducing management layers, cutting bureaucracy, implementing stricter spending controls, revamping performance evaluations, adjusting compensation structures, and mandating five-day in-office work weeks for corporate staff.

These operational shifts accelerated following the pandemic when Amazon's explosive growth began to plateau, prompting the company to eliminate unprofitable initiatives and reduce its expanded workforce.

Earlier this year, Amazon instituted a hiring freeze across its retail division. By July, its cloud computing division, Amazon Web Services, also experienced significant layoffs.

This trend extends beyond Amazon, with other tech giants implementing similar measures despite continued financial success. Microsoft announced plans to eliminate approximately 15,000 positions in 2025, while Meta has begun replacing roles with AI automation, particularly within its risk division.