Amazon Plans Workforce Reductions as It Shifts Focus to AI Technology

Amazon CEO Andy Jassy announced that the company anticipates artificial intelligence will lead to a reduction in its corporate workforce as efficiency gains are realized. He highlighted that AI is being integrated across Amazon, which employs over 1.5 million people globally. The company plans to invest $100 billion in AI services and data centers this year, an increase from $83 billion in the previous year. Jassy pointed out that AI agents will significantly transform work and living, stating that while many have yet to be developed, their emergence is imminent and will enhance innovation speed for customer engagement. He underscored that these developments evoke concerns among corporate workers, particularly as other companies, like Crowdstrike and Duolingo, have already begun reducing staff in favor of AI solutions. Similarly, BT announced plans to cut 40,000 jobs, suggesting that the full potential of AI is yet to be realized in workforce reductions.

Source link