Amazon is set to lay off tens of thousands of office workers, as the e-commerce and tech giant seeks to trim costs amid significant investments in artificial intelligence. The company plans to cut approximately 30,000 positions, which will begin on Tuesday, according to multiple US media reports. This move represents nearly 10 percent of Amazon’s office workforce, which totals around 350,000 employees. However, the reduction is not expected to affect the distribution and warehouse workforce, which accounts for the majority of the company’s over 1.5 million employees.
The decision to cut jobs is part of Amazon’s efforts to streamline its operations and reduce costs, as the company faces pressure to show the returns on its significant investments in artificial intelligence. Amazon’s chief executive, Andy Jassy, has highlighted the potential of AI to improve workplace efficiency and customer experience. The company is set to report its earnings on Thursday, and investors will be watching closely to see how its AI investments are paying off.
Amazon’s cloud computing unit, Amazon Web Services (AWS), is a key area of focus for the company’s AI investments. AWS is the leading cloud computing platform, followed by Microsoft Azure and Google Cloud. The platform provides critical infrastructure for many online services, and a recent outage highlighted the extent to which internet life depends on Amazon’s technology. The outage, which was caused by an issue with the Domain Name System (DNS), affected a range of popular internet services, including streaming platforms, messaging apps, and online banking services.
The job cuts and AI investments are significant developments for Amazon, as the company seeks to maintain its position as a leader in the tech industry. The move to reduce its office workforce is a strategic decision to focus on areas of the business that are driving growth and innovation. As Amazon looks to the future, it is clear that artificial intelligence will play a key role in shaping the company’s operations and customer experience. With its significant investments in AI and its dominant position in the cloud computing market, Amazon is well-placed to navigate the challenges and opportunities of the rapidly evolving tech landscape.