Amazon cuts 14,000 jobs as spending on AI ramps up
Amazon will cut nearly 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence.
In June, CEO Andy Jassy, who has aggressively sought to cut costs since becoming CEO in 2021, said he predicted generative AI would reduce Amazon’s corporate workforce over the next few years.
Jassy said at the time that Amazon had more than 1,000 productive AI services and applications in progress or being built, but that figure was a “small fraction” of what it planned to build.
Jassy encouraged employees to participate in the company’s AI plans, and a month later, Amazon announced it would invest billions of dollars to expand cloud infrastructure and advance AI innovation in North Carolina, Pennsylvania and Australia.
On Tuesday, the online giant said it was cutting red tape.
“The reductions we’re sharing today are a continuation of that work, further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and the things that matter most to our customers’ current and future needs,” Beth Galetti, senior vice president of human experience and technology at Amazon, said in a message to employees on Tuesday.
Teams and individuals affected by layoffs will be notified on Tuesday.
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