Amazon Cuts 14,000 Corporate Jobs, Citing AI
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Amazon has announced it will be scything more than 14,000 jobs as part of its efforts to streamline operations in the era of artificial intelligence. “What we need to remember is that the world is changing quickly,
The company said it's cutting roles in order to help make the company leaner and less bureaucratic, while it looks to invest in generative AI.
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Amazon's HR chief also explained the 14,000 cuts in part by saying AI is helping companies innovate faster.
The decision to lay off 30,000 employees marks the largest corporate job cuts in Amazon’s history, according to CNBC. The layoffs will reduce “bureaucracy” and help Amazon invest “in our biggest bets”, Beth Galetti, senior vice president of people experience and technology at Amazon, wrote in a blog post.
The other thing that makes this seem different from past layoffs is who is affected. Amazon has already optimized its warehouses. It isn’t cutting the workers who handle packages—in fact, the company plans to hire 250,000 seasonal employees to ramp up for the holidays.
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Amazon CEO Andy Jassy said earlier this year that the Washington-based company could shrink its workforce by embracing AI. The firm is part of a cohort of large-cap companies that have seen their AI-related productivity increase as the technology becomes mainstream.
Amazon will cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence while trimming spending.