Amazon cuts 14,000 corporate jobs as spending on artificial intelligence accelerates

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By MICHELLE CHAPMAN, Associated Press Business Writer

Amazon will cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence while trimming spending.

In June CEO Andy Jassy, who has aggressively sought to cut costs since becoming CEO in 2021, said that he anticipated generative AI would reduce Amazon’s corporate workforce in the next few years.

Jassy said at the time that Amazon had more than 1,000 generative AI services and applications in progress or built, but that figure was a “small fraction” of what it plans to build.

Jassy encouraged employees to get on board with the company’s AI plans. Earlier that month Amazon announced that it was planning to invest $10 billion toward building a campus in North Carolina to expand its cloud computing and artificial intelligence infrastructure.

Since 2024 started, Amazon has committed to about $10 billion apiece to data center projects in Mississippi, Indiana, Ohio and North Carolina as it ramps up its infrastructure to compete with other tech giants to meet growing demand for artificial intelligence products.

Amazon is competing in the AI space with giants like OpenAI, Google and Microsoft. In a conference call with industry analysts in May, Jassy said the potential for growth in the company’s AWS business is massive.

“If you believe your mission is to make customers’ lives easier and better every day, and you believe that every customer experience will be reinvented with AI, you’re going to invest very aggressively in AI, and that’s what we’re doing. You can see that in the 1,000-plus AI applications we’re building across Amazon. You can see that with our next generation of Alexa, named Alexa+,” he said.

On Tuesday, the online giant said it was reducing bureaucracy.

“The reductions we’re sharing today are a continuation of this work to get even stronger by further 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,” Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, said in message to employees Tuesday.

Teams and individuals impacted by the job cuts will be notified on Tuesday. Most workers will be given 90 days to look for a new position internally, Galetti said. For those who can’t find a new role at the company or who opt not to look for one will be provided transitional support including severance pay, outplacement services and health insurance benefits.

Amazon has about 350,000 corporate employees and a total workforce of approximately 1.56 million. The cuts announced Tuesday amount to about a 4% reduction in its corporate workforce.

Amazon’s workforce doubled during the pandemic as millions stayed home and boosted online spending. In the following years, big tech and retail companies cut thousands of jobs to bring spending back in line.

The cuts announced Tuesday suggests Amazon is still trying to get the size of its workforce right and it may not be over. It was the biggest culling at Amazon since 2023, when the company cut 27,000 jobs. Those cuts came in waves, with 9,000 jobs trimmed in March of that year, and another 18,000 employees two months later. Amazon has not said if more job cuts are coming.

Neil Saunders, managing director of GlobalData, said in a statement that the layoffs “represent a deep cleaning of Amazon’s corporate workforce.”

“Unlike the Target layoffs, Amazon is operating from a position of strength,” he said. “The company has been producing good growth, and it still has a lot of headroom for further expansion in both the U.S. and overseas.”

But Saunders noted that Amazon is not immune to outside factors, as global markets tighten and underlying costs climb.

“It needs to act if it wants to continue with a good bottom line performance. This is especially so given the amount of investment the company is making in areas like logistics and AI. In some ways, this is a tipping point away from human capital to technological infrastructure,” he said.

Amazon will post quarterly financial results on Thursday. During its most recent quarter, the company reported 17.5% growth for its cloud computing arm Amazon Web Services.

Today in History: October 28, Statue of Liberty dedicated in New York

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Today is Tuesday, Oct. 28, the 301st day of 2025. There are 64 days left in the year.

Today in history:

On Oct. 28, 1886, the Statue of Liberty, a gift from the people of France, was dedicated in New York Harbor by President Grover Cleveland.

Also on this date:

In 1636, the General Court of Massachusetts passed a legislative act establishing Harvard College.

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In 1858, Rowland Hussey Macy opened his first New York store at Sixth Avenue and 14th Street in Manhattan.

In 1919, Congress passed the Volstead Act, which provided the means for enforcement of a Prohibition era ban on alcohol, over President Woodrow Wilson’s veto.

In 1936, President Franklin D. Roosevelt rededicated the Statue of Liberty on its 50th anniversary.

In 1962, Soviet leader Nikita Khrushchev informed the United States that he had ordered the dismantling of missile bases in Cuba; in return, the U.S. secretly agreed to remove nuclear missiles from U.S. installations in Turkey as the two superpowers defused tensions of the Cuban missile crisis.

In 1991, what became known as “The Perfect Storm” began forming hundreds of miles east of Nova Scotia; lost at sea during the storm were the six crew members of the Andrea Gail, a fishing boat from Gloucester, Massachusetts.

In 2001, the families of people killed in the Sept. 11 terrorist attack in New York gathered at ground zero in lower Manhattan for a memorial service filled with prayer and song.

In 2012, the San Francisco Giants won their second World Series title in three years, beating the Detroit Tigers to complete a four-game sweep.

In 2018, The Boston Red Sox beat the Los Angeles Dodgers to win the World Series in five games.

In 2021, Facebook CEO Mark Zuckerberg said his company was rebranding itself as Meta, an effort to encompass its virtual-reality vision for the future, while keeping the Facebook name for the social network itself.

In 2022, Tesla CEO Elon Musk took control of Twitter for $44 billion after a protracted legal battle and months of uncertainty. He subsequently rebranded the social media platform as X in 2023.

In 2022, Paul Pelosi, the 82-year-old husband of House Speaker Nancy Pelosi, was severely beaten by a hammer-wielding assailant who broke into their San Francisco home. Less than three weeks later, Nancy Pelosi announced she would remain in the House but step down as speaker in the next Congress.

In 2024, the Pentagon disclosed that North Korea had sent about 10,000 troops to Russia to train and likely fight against Ukraine, a move seen as piling more pressure on Ukraine’s overstretched army and stoking geopolitical tensions in the Indo-Pacific region.

Today’s Birthdays:

Basketball Hall of Famer Lenny Wilkens is 88.
Actor Jane Alexander is 86.
Actor Dennis Franz is 81.
Actor-singer Telma Hopkins is 77.
TV personality and Olympic gold medal decathlete Caitlyn Jenner is 76.
Actor Annie Potts is 73.
Microsoft co-founder Bill Gates is 70.
Actor Daphne Zuniga (ZOO’-nih-guh) is 63.
Actor Lauren Holly is 62.
Talk show host-comedian Sheryl Underwood is 62.
Football Hall of Famer Steve Atwater is 59.
Actor-comedian Andy Richter is 59.
Actor Julia Roberts is 58.
Singer Ben Harper is 56.
Football Hall of Famer Terrell Davis is 53.
Country singer Brad Paisley is 53.
Actor Joaquin Phoenix is 51.
Actor Gwendoline Christie is 47.
Actor Matt Smith is 43.
Actor Troian Bellisario is 40.
Singer-songwriter Frank Ocean is 38.
Tennis player Taylor Fritz is 28.
Actor Nolan Gould is 27.

Timberwolves can’t stop Murray, Jokic in loss without Edwards

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The Timberwolves’ offense managed to hum early offensively in their first full game without star guard Anthony Edwards. But Minnesota couldn’t sustain the pace in a 127-114 loss to Denver at Target Center.

If anything, Minnesota missed Edwards’ defensive capabilities. Without Edwards and Jaylen Clark, who missed the contest with left calf tightness, much of the Timberwolves’ defensive resistance was diminished.

That showed up in a major way over the final two frames.

Minnesota struggled out of the gates, but worked its way back into the contest at the end of the opening frame and utilized a 24-7 run in the second quarter to build a 9-point advantage. The Wolves led by eight at the break in a game in which both offenses were getting any look they wanted.

Denver just happened to miss a few good looks over the first two quarters. It did not in the third.

Denver scored 45 points in the third quarter to seize control of the contest. Jamal Murray had 23 of those points, hitting four triples in the frame.

Minnesota (2-2) was unable to continue to go blow for blow with Denver’s massive firepower as the Timberwolves’ shots stopped falling down the stretch. Late-game offense was another area in which Edwards was missed.

The Wolves continued to generate good shots even over the final two quarters — they penetrated the paint at will throughout the affair — but Jaden McDaniels, who finished with a team-high 25 points, nor Donte DiVincenzo could get critical shots to fall when they needed them to stay in the fight.

Julius Randle added 24 points and seven boards. Mike Conley, who started in place of Edwards, had 10 points.

But it wasn’t nearly enough to counteract what Denver (2-1) was doing on the other end. Murray finished with 43 points on the night. Nikola Jokic logged his third triple-double in as many games, finishing with 25 points on 9 for 10 shooting to go with 19 rebounds and 10 assists.

On the night, Denver shot 52% from the field and 50% from beyond the arc. Yes, the Nuggets sport one of the NBA’s best offenses, but it was another game in which Minnesota was unable to impose itself defensively.

It’s a growing theme just a few games into the season, and one the Wolves will need to address if they’re to achieve at a high level, particularly while Edwards is out of the lineup.

Loons beat Seattle in dramatic penalty kicks to win Game 1

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Minnesota United loves penalty kicks in the MLS Cup Playoffs.

The fourth-seeded Loons and fifth-seeded Sounders played to a scoreless draw in Game 1 of a MLS Cup Playoffs first-round series, but Minnesota beat Seattle 3-2 in penalty kicks.

Last year, Minnesota United won two penalty kick shootouts to beat Real Salt Lake in a first round series and advance to the Western Conference semifinals.

Alex Roldan had his PK saved by Loons goalkeeper Dayne St. Clair in the second round, while his brother Cristian Roldan had his go off the woodwork in the fourth round.

Julian Gressel could have sealed the win in the fourth round, but had his shot go off the post. Then Danny Leyva missed his PK to hand it to Minnesota.

Loons’ Kelvin Yeboah, Nector Triantis and Juaquin Pereya made PKs to take a 1-0 series head heading into Game 2 next Monday in Seattle.

The Loons had the highest quality scoring chance of first half come the ninth minute. Forward Bongi Hlongwane had a clean breakaway but pushed his shot wide of the far post. Hlongwane’s chance had an expected

In pursuit, Sounders center back Jackson Ragen put a hand to Hlongwane’s back and Hlongwane went down. On replay, fans at Allianz Field protested for a penalty kick, but referee Alexis da Silva said play on.

Loons head coach Eric Ramsay didn’t roll out the lineup shared pre-match with Hlongwane moving from right wing back to No. 9, while Joseph Rosales went from midfield to right wing back. Robin Lod and Joaquin Pereyra were attacking midfielders.

After finishing regular season with a back four, Loons went back to its staple of a five-man back line for Game 1, with Nico Romero, Michael Boxall and Jefferson Diaz at center back and Anthony Markanich at left wingback.

MNUFC won both regular season matches against Seattle in 2025, a 3-2 win in Washington in June and a 1-0 victory in St. Paul in August.

Minnesota had less than 40% possession in both regular-season games and again on Monday.

During one long stretch of Seattle possession, Jordan Morris was able to find Danny Musovski at the near post, but goalkeeper Dayne St. Clair was not napping and made a point-blank save in the 80th minute.

Ramsay subbed in Kelvin Yeboah and Hassani Dotson for Rosales and Lod in the 71st minute. Then Owen Gene for Will Trapp in the 82nd minute.

Joaquin Pereyra set up for free kick from 25 yards out in the 89th minute and while most of his service was wildly off line most of the game, this shot narrowly missed from curling inside the far post.

To close out the regular season, Minnesota has won only one of its last four matches, while Sounders have victories in three straight — all against playoff teams.

Briefly

MUUFC2, the club’s second team, upset top seed St. Louis City2 in the MLS Next Pro playoffs on Sunday and advance to play Colorado Rapids 2 in the Western Conference final on Sunday. The Loons (12-10-6) finished in fifth place during the lower level’s regular season, but have strung together two playoff wins.