AI Drives Job Cuts at Amazon and Beyond

Amazon has begun cutting jobs, and AI is the reason. The company is reducing its corporate workforce by about 14, 000 roles. This move comes as AI technology is changing how businesses operate. AI is transforming industries quickly. It allows companies to work faster and more efficiently. Amazon wants to become more streamlined. This means fewer layers of management and more direct ownership. Most affected employees will have 90 days to find new roles within the company. They will also receive support, including severance pay and health benefits. These cuts are the largest since 2022, when Amazon eliminated about 27, 000 jobs.Amazon is not alone in this trend. Other companies are also reducing their workforce. Paramount Skydance, Salesforce, Target, and Microsoft are all cutting jobs. Goldman Sachs is also limiting hiring and cutting some positions due to AI. AI is not the only factor, though. Many companies are still adjusting to the post-pandemic world. The surge in online shopping during the pandemic led to hiring sprees. Now, companies are scaling back. Some experts argue that AI is not the real reason for these layoffs. Fabian Stephany, an assistant professor at the Oxford Internet Institute, suggests that companies are using AI as an excuse. He believes that many of these jobs were not sustainable in the long term. Companies may be using AI to justify cuts they planned to make anyway.