Despite recognizing that the company "is performing well," Amazon has announced plans to eliminate 14,000 positions as part of efforts to be organized more efficiently

Amazon is reducing its workforce by about 14,000 jobs as part of organizational adjustments aimed at enhancing efficiency and reallocating resources to focus on key priorities for customers, both present and future.

According to a statement from Beth Galetti, Amazon's senior vice-president of people experience and technology, this initiative will include job cuts in certain areas while hiring continues in others, resulting in a net reduction in about 14,000 corporate positions.

Although the statement did not specify details, Reuters indicates that divisions like human resources, operations, devices and services, and Amazon Web Services will be impacted. An incident involving AWS recently disrupted major online services, including Fortnite and PSN, as reported by GamesIndustry.biz.

Bloomberg additionally confirms that the gaming sector will see cuts, especially in Amazon's Irvine and San Diego offices, as the company scales back on developing large-scale productions, particularly MMOs.

An announcement on the New World's website, which is Amazon's prominent MMO launched in 2021, stated that it will no longer receive new content updates. This revelation comes after its recent release on consoles, which drove up player counts on Steam in the past year, according to GameDiscoverCo.

Employees facing job losses have a window of 90 days to find new roles within the company. Those who don't secure internal positions will receive severance packages, career transition support, health benefits, and additional assistance.

Galetti remarked on the transformative impact of AI, likening its influence to the internet revolution and highlighting how it accelerates innovation across traditional and emerging markets.

Addressing skepticism about the workforce reduction amidst Amazon's strong performance, Galetti emphasized the need for the company to become more agile by reducing structure complexity and fostering ownership.

Reuters reports Amazon CEO Andy Jassy's focus on eliminating excessive layers of management.

The development cessation for New World has been officially confirmed in this update.