Amazon is Cutting Thousands of Corporate Jobs as Spending on AI Skyrockets
Amazon has announced plans to cut approximately 14,000 corporate jobs, marking a significant restructuring effort as the company accelerates its spending on artificial intelligence (AI). This move comes as CEO Andy Jassy has expressed his intention to reduce Amazon's workforce by up to 3% in the next few years, citing AI as a driving force behind this decision.
As part of its aggressive AI push, Amazon is investing heavily in various projects, including a $10 billion campus expansion in North Carolina and data center projects in Mississippi, Indiana, Ohio, and North Carolina. The company's ambition to become a leader in the AI space has led it to partner with giants like OpenAI, Google, and Microsoft.
Jassy emphasized during a conference call that investing in AI is crucial for Amazon's growth and success, particularly when it comes to enhancing customer experiences through its various products, including Alexa+. By shifting resources towards its biggest bets and eliminating bureaucracy, the company aims to optimize its workforce and focus on what matters most to customers.
The job cuts are expected to impact around 4% of Amazon's corporate workforce, leaving approximately 336,000 employees. While the layoffs may seem like a setback, experts argue that they represent a strategic move by the company to adapt to changing market conditions and invest in its technological infrastructure.
Neil Saunders, managing director of GlobalData, noted that "Amazon is operating from a position of strength," citing the company's recent growth and headroom for further expansion. However, he also warned that Amazon needs to act quickly to maintain its bottom-line performance, as global markets tighten and underlying costs rise.
With the announcement, Amazon will post quarterly financial results on Thursday, providing insight into how the company plans to navigate this significant restructuring effort while continuing to invest in AI-driven growth.
Amazon has announced plans to cut approximately 14,000 corporate jobs, marking a significant restructuring effort as the company accelerates its spending on artificial intelligence (AI). This move comes as CEO Andy Jassy has expressed his intention to reduce Amazon's workforce by up to 3% in the next few years, citing AI as a driving force behind this decision.
As part of its aggressive AI push, Amazon is investing heavily in various projects, including a $10 billion campus expansion in North Carolina and data center projects in Mississippi, Indiana, Ohio, and North Carolina. The company's ambition to become a leader in the AI space has led it to partner with giants like OpenAI, Google, and Microsoft.
Jassy emphasized during a conference call that investing in AI is crucial for Amazon's growth and success, particularly when it comes to enhancing customer experiences through its various products, including Alexa+. By shifting resources towards its biggest bets and eliminating bureaucracy, the company aims to optimize its workforce and focus on what matters most to customers.
The job cuts are expected to impact around 4% of Amazon's corporate workforce, leaving approximately 336,000 employees. While the layoffs may seem like a setback, experts argue that they represent a strategic move by the company to adapt to changing market conditions and invest in its technological infrastructure.
Neil Saunders, managing director of GlobalData, noted that "Amazon is operating from a position of strength," citing the company's recent growth and headroom for further expansion. However, he also warned that Amazon needs to act quickly to maintain its bottom-line performance, as global markets tighten and underlying costs rise.
With the announcement, Amazon will post quarterly financial results on Thursday, providing insight into how the company plans to navigate this significant restructuring effort while continuing to invest in AI-driven growth.
They should try to reduce overhead instead of laying off employees idk why they wanna cut so many corporate jobs anyway. AI is cool and all but ppl gotta make ends meet 
. All that hype about AI and becoming a "leader" in the space is just an excuse for them to eliminate actual workers and save some pennies. And good luck with that $10 billion campus expansion... who's gonna foot that bill?
. I mean, it's understandable they want to focus on their tech investments, especially with AI taking off like it has. But at the same time, it's gotta be tough for all those people whose jobs are being cut 
. I hope they get support from gov or orgs that can help 'em transition into new roles.
?
it's like Amazon is saying goodbye to a lot of its talented people 
But on the other hand, I get why they're doing this - AI is the future and they need to be at the forefront 
. It's crazy to think that $10 billion is being invested in North Carolina alone 
but at the same time, i get why they're doing it - ai is the future and if they wanna stay competitive they gotta invest big time 
hope the people getting laid off are able to find new gigs soon 
also, $10 billion campus expansion in nc is crazy that's like whoa money 
but seriously though, can't they just phase in the job cuts or something? it feels like a big ol' axe to the neck for all those people 
I know Amazon wants to stay ahead of the game, but can't they just innovate & disrupt instead of just paying others to do it? 
.
.
. How are they gonna ensure Alexa+ and other products keep getting updated & improved with fewer people around? 
It feels like they're trying to prove a point about innovation & growth... 
anyway, amazon's always pushing boundaries, and now they're gonna be a leader in ai... that's a big deal 
. They just want to cut costs and make a profit off that $10 billion AI project 
. Mark my words, these job cuts are going to come back to haunt them...