That’s why Amazon says it will lay off 14,000 workers while still performing well

More big job cuts are coming at Amazon.

Amazon (AMZN), the retail and technology giant, said Tuesday it will cut about 14,000 jobs from its white-collar workforce. The news makes it the latest giant to do so, and one of many big tech companies to pull back at a time when business is strong. Amazon is expected to report increased revenue and profits when it reports third-quarter results on Thursday.

In a letter posted online, Beth Galletti, Amazon’s senior vice president of people and technology experience, acknowledged that “some may wonder why roles are being reduced when the company is doing so well.” Her response:

Across our business, we deliver great customer experiences every day, innovate at a rapid rate, and deliver strong business results. What we need to remember is that the world is changing rapidly. This generation of AI is the most transformative technology we have seen since the Internet, and is enabling companies to innovate much faster than ever before (in existing market segments and entirely new ones). We are convinced that we need to organize more agilely, with fewer layers and more ownership, to move as quickly as possible for the benefit of our clients and our business.

The company said the headcount reduction aims to “continue reducing bureaucracy, eliminating layers, and shifting resources to ensure we are investing in our biggest bets and what matters most to our customers’ current and future needs.”

Amazon wants to be organized more fluidly and with fewer layers

Amazon said it plans to give affected employees 90 days to see if they are a good fit for an open position elsewhere in the company. CNBC He said the cuts are expected to be Amazon’s largest layoffs ever Reuters It said up to 30,000 workers could be laid off in future phases of the same plan, citing people familiar with the matter.

Amazon said in its letter on Tuesday that it expects to find “additional places to eliminate layers, increase ownership, and achieve efficiency gains.” The company declined to address the specific number it reported Reuters.

Large companies in technology and other sectors have also recently made cuts in their workforces, including Oracle (ORCL), Microsoft (MSFT), and Alphabet (GOOGL), Google’s parent company. Analysts have pointed to tech giants’ plans to spend hundreds of billions on AI infrastructure as one explanation for why companies are seeking to reduce their headcount.

Also on Tuesday, shipping giant United Parcel Service (UPS) said it had cut about 34,000 jobs across its operating sector and closed 93 facilities since announcing a restructuring plan earlier this year, along with cutting 14,000 jobs among its management ranks.

Online education company Chegg (CHGG) also announced job cuts on Tuesday, about 388 jobs or 45% of its workforce, citing lower traffic to its education services due to “new AI realities” as Google’s AI overviews reduce traffic to publishers.

—David Marino Natchison contributed to this article.