Amazon plans to eliminate 49,000 desks globally this year, freeing up over 10 million square feet of office space as it seeks to cut costs for its massive AI investments. The move targets a significant reduction in its global office vacancy rate, aiming to drop it from roughly 31% to 22.9% by 2026. This strategic downsizing is driven by the company's need to fund its aggressive push into artificial intelligence technologies.

Senior Real Estate Manager Martha Schwarzkopf Doyle framed the scale of the cuts starkly, comparing it to needing only enough desks for a sold-out Taylor Swift concert. The plan involves allowing leases to expire, temporarily closing offices ('hibernating'), and subleasing or terminating leases when spaces become largely vacant. While Amazon hasn't specified where the cuts will occur, it's clear the company is actively reshaping its physical footprint to align with its future priorities.

In Seattle alone, the company employs roughly 65,000 corporate workers occupying about 17.92 million square feet, making it the region's largest office occupier. Nationwide, Amazon had 40.2 million square feet of office space in 2025, with an additional 28.3 million internationally. The company also intends to add 1.8 million square feet of new office space this year, though the locations remain unspecified.

Amazon's spokesperson emphasized the company regularly evaluates its footprint based on business needs, prioritizing spaces that foster innovation and collaboration, especially as employees return to the office. This significant reduction in desk count represents a major shift in Amazon's operational strategy, directly tied to its financial commitment to AI development.