SEATTLE — Amazon has confirmed it will cut 14,000 corporate jobs as part of a strategic shift towards artificial intelligence, raising concerns about the broader economic impact.
The layoffs account for about 4% of Amazon’s global workforce. The local layoffs are set to take effect by the end of January, with 2,303 of those cuts occurring in Washington, according to the Washington Employment Security Department (ESD) website.
ESD said on its site Tuesday that it received a WARN (Worker Adjustment and Retraining Notification) for Amazon with various locations in Washington.
Neera, an Amazon business team manager, described the atmosphere in South Lake Union as somber, saying, “It’s still a little fresh and still new – people are trying to digest what’s happened so far.” Employees on their lunch breaks expressed uncertainty about their job status, with many not yet informed if they are among those affected.
RELATED: Amazon to cut about 14,000 corporate jobs beginning this week, more may be possible
U.W. Business Professor Jeff Shulman, Chair of the Marketing and International Business Department at the Michael G Foster School of Business at the University of Washington. A highlighted the potential ripple effects on tax revenues and local spending.
Fourteen-thousand highly paid workers losing their jobs is devastating for them and could be problematic for our city on several dimensions,” Shulman said. “A lot of small businesses such as restaurants, bars, night and entertainment, nightlife and entertainment, they’ve catered to Amazon employees expecting that they’ll spend those big salaries here in downtown or in neighborhoods around Seattle and in the region.
Shulman added that with all the high-tech layoffs here and across the country, it makes sense to lean into diversification by attracting other industries to the region.
Local businesses, such as the “Spice on Curve” food truck, are bracing for the impact. Owner Nasima Akhter, who knows her Amazon customers by name, expressed concern.
“I’m just making my bills somehow, but if it’s happening again, I don’t know where I’m going to go,” Akhter said.
In an online letter to employees, an Amazon senior vice president explained the job cuts are linked to an AI initiative, calling it “the most transformative technology since the internet.” The company aims to become more efficient, with fewer layers and increased ownership.
The layoffs come amid broader economic challenges, with Reuters reporting that 30,000 layoffs are expected. Amazon has not yet responded to inquiries about further job cuts. As the company seeks to operate like “the world’s largest startup,” the future remains uncertain for many employees and local businesses.
“It was a shock when it was first reported that there were 30,000 jobs that were gonna be shed from Amazon, now they’ve confirmed 14,000, and we’re left to wonder, are these 14,000 just the tip of the iceberg?” asked Shulman.
On Tuesday, Seattle Mayor issued the following statement regarding the layoffs:
Today, many people across the country, including here in Seattle, heard difficult news. My thoughts are with the workers and families now facing uncertainty. Losing a job is never just about a paycheck; it affects people, households, and the communities around them. Every organization, large or small, depends on the people who give their talent and best hours to a shared effort.
While decisions about staffing rest with employers, the City’s role is to keep building a strong, diverse economy where workers can find opportunity and stability. Seattle has long been home to some of the world’s most innovative industries — from aerospace and manufacturing to clean energy, health care, the creative sectors, and technology — because people who dream big, take risks, and keep finding ways to make a difference see value in building their lives here.
Amazon is one of many employers that call Seattle home, but no single company defines our economy or our future. Our strength has always come from the people, businesses, and organizations that power this city with their ideas, their innovation, and their resilience. That’s what keeps Seattle moving forward.
Markham McIntyre, Director of the Seattle Office of Economic Development, also issued a statement on behalf of the city of Seattle:
Amazon’s layoff news is tough for all of the workers impacted by this decision and for our local economy. Our tech workforce is one of our points of pride, and it has been hit hard recently.
Recently, our Seattle-King County Workforce Development Council has been holding rapid response workshops for laid-off workers, helping them connect to resources and services. We will continue to explore ways that local government can help these talented workers transition successfully into new opportunities.
It’s critical to have the pieces in place that make our economy resilient and ensure there are opportunities to keep talented people here. The diversity of industries we have here is one of our strengths and is even more important as industries adapt to new technologies and ways of working.
As the nature of work continues to evolve, we need the public and private sectors to work together to chart a course that minimizes disruption, expands opportunity, and ensures new technologies help strengthen every part of Seattle’s economy while creating good jobs and opportunities for more people across our communities.
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