Concerns about artificial intelligence replacing white-collar roles continue to swirl across the tech sector, but recent research suggests the impact remains uneven. A Vanguard report found that jobs most exposed to AI automation are still expanding faster than before the pandemic, even outpacing overall employment growth. While some companies have trimmed roles that AI can handle more efficiently, there is little evidence of widespread damage so far.
Amazon sits at the center of that debate as it accelerates its own use of generative AI. CEO Andy Jassy has repeatedly warned employees that automation will reshape how work gets done. “As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy wrote last year. He added that AI agents are coming quickly across every industry.
That backdrop frames Amazon’s latest workforce reduction. The company said Wednesday it will lay off 16,000 employees, marking its second major round of job cuts in three months. The reductions follow a previous decision in late October to eliminate 14,000 corporate roles as Amazon seeks to stay agile in an AI-driven technology race.
In a blog post, senior vice president of people Beth Galetti said the company aims to speed up decision-making by cutting internal complexity. “We’ve been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” she said.
Amazon employs more than 350,000 corporate workers, making it the second largest private employer in the United States after Walmart. Combined, the two recent rounds of cuts amount to about 9% of its office workforce.
Galetti said the layoffs would not become a routine cycle, even as Amazon reassesses staffing needs tied to AI. The company plans to continue hiring in areas viewed as critical to its long term strategy.
The job reductions come as Amazon competes with Microsoft, Google, Meta and OpenAI to build advanced models and computing infrastructure. Jassy has stressed that the layoffs focus on efficiency rather than cost cutting.
Layoffs begin Wednesday, with most affected employees given 90 days to seek internal roles. Those who leave will receive severance and extended benefits. Amazon also announced it will shut down its Amazon Fresh and Amazon Go grocery formats, doubling down on Whole Foods as it reshapes its retail footprint.
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