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- Thousands of Amazon jobs could disappear as AI quietly reshapes the company (marketrealist.com)
Amazon Prepares for Another Round of Layoffs Amidst AI Integration
SEATTLE, WA – Amazon, the e-commerce and tech titan, is reportedly gearing up for a second wave of job cuts next week, impacting thousands of employees. This move follows an initial round of layoffs in October and is part of a broader strategy to reduce its corporate workforce by 10%, according to sources familiar with the matter cited by Reuters.
Last year, Amazon announced plans to eliminate 14,000 positions, aiming to streamline operations and reduce bureaucracy. While the company has expressed a desire to operate as the “largest startup in the world,” speculation has linked these layoffs, in part, to the increasing adoption of Artificial Intelligence. This upcoming round is expected to affect a similar number of employees, with cuts potentially beginning as early as Tuesday.
Departments slated to be impacted include Amazon Web Services, retail, Prime Video, and the People Experience and Technology units (human resources). However, sources cautioned that the specific details of these plans could still change.
The connection between job reductions and AI has been a recurring theme. An internal letter from Amazon in October, prior to the first round of cuts, highlighted the transformative power of AI.
“This generation of AI is the most transformative technology we’ve seen since the internet, and it’s enabling companies to innovate much faster than ever before,” the letter stated, as previously reported by Reuters. The company further showcased its latest AI models at its annual AWS cloud computing conference in December.
While Amazon CEO Andy Jassy has previously acknowledged that increased efficiency from AI could lead to a reduced corporate workforce, he also reportedly attributed some of the job cuts to correcting past “over-hiring practices.” During a third-quarter earnings call, Jassy noted, “You end up with a lot more people than what you had before, and you end up with a lot more layers.”
The company’s overall goal is to reportedly cut a total of 30,000 jobs from its 1.58 million workforce, with corporate divisions bearing the brunt of these reductions. If realized, this would mark the largest layoff event in Amazon’s history, surpassing the 27,000 jobs cut in 2022.
In its October internal memo, Amazon assured employees affected by layoffs that they would remain on payroll for three months to allow them to seek new opportunities, either within the company or externally. The message stated, “We’re working hard to support everyone whose role is impacted, including offering most employees 90 days to look for a new role internally (the timing will vary some based on local laws), and our recruiting teams will prioritize internal candidates to help as many people as possible find new roles within Amazon.” That 90-day window for the initial cuts is set to expire on Monday.
These developments unfold amidst a challenging job market, often characterized as “low-hire, low-fire.” However, with a growing number of corporations integrating AI into their operations, market conditions appear to be far from improving. A recent Business Insider report indicated that over 100 companies, including major players like Nike, FedEx, and Verizon, announced layoff plans at the start of 2026, further underscoring the ongoing shift in the employment landscape.
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- Thousands of Amazon jobs could disappear as AI quietly reshapes the company (marketrealist.com)