Amazon plans to replace workers with AI
(MENAFN) Amazon, the US retail and technology powerhouse, has announced plans to cut thousands of positions as part of a corporate restructuring that emphasizes artificial intelligence.
The company will eliminate roughly 14,000 corporate roles, amounting to a 4% reduction in its office workforce, according to reports. Amazon noted that AI is “enabling companies to innovate much faster than ever before.”
Employees across the US, Canada, and Europe have reportedly been notified of the layoffs through internal communications. This marks Amazon’s largest job reduction since 2023, when the company cut 27,000 roles globally.
Since 2024, Amazon has invested approximately $40 billion in four US data center projects as it strengthens its infrastructure to compete with major AI players such as OpenAI, Google, Microsoft, and Meta.
Earlier this month, US Senator Bernie Sanders, ranking member of the Senate Committee on Health, Education, Labor, and Pensions, criticized the trend of using technology primarily to boost corporate profits and concentrate wealth. He highlighted executives who are investing heavily in automation while simultaneously announcing mass layoffs and cost-cutting measures.
Amazon’s job cuts are part of a broader wave of corporate downsizing as companies accelerate automation. Data from industry trackers indicate that nearly 113,000 tech positions have been eliminated across 218 firms worldwide this year.
Several of the largest US tech firms have also made cuts while pivoting toward AI. Microsoft plans to reduce its workforce by about 6,000 roles, or 3%, while Alphabet has trimmed hundreds of jobs within its Android, Pixel, and Chrome teams. Intel reportedly intends to cut more than 20% of its staff, and Apple laid off over 600 employees in California last year.
In addition to the AI-driven restructuring, slower revenue growth and global economic uncertainty are cited as contributing factors to these workforce reductions.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
