Amazon on Tuesday announced plans to cut about 14,000 corporate jobs as it trims management layers to reduce costs while ramping up investments in artificial intelligence.

The company had around 1.56 million full- and part-time workers at the end of last year, including roughly 350,000 in corporate roles.

The decision is part of efforts to reduce costs, streamline operations, and correct pandemic-era overhiring.

Sources familiar with the plan said that the cuts will affect about 10 per cent of Amazon’s 350,000 corporate employees, though they represent only a small share of the company’s global workforce of around 1.55 million, according to Reuters.

The layoffs will span several units, including the People Experience and Technology group, as well as operations, devices and services, and Amazon Web Services.

The cuts are tied to CEO Andy Jassy’s ongoing push to reduce what he has called “excess bureaucracy” across the company.

Over the past year, Jassy has worked to streamline Amazon’s management structure, including launching an anonymous feedback channel that has produced more than 1,500 employee suggestions and led to over 450 process improvements so far.

Jassy has also noted that Amazon’s increasing use of artificial intelligence is transforming roles and work processes across the company. In June, he suggested that AI tools would reduce the volume of repetitive, manual tasks, a trend industry analysts say is likely to continue.

“Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” said Sky Canaves, an eMarketer analyst.

Canaves added that the cuts also reflect near-term pressure to help offset the company’s substantial investments in AI infrastructure.