Overview
- Amazon confirmed it will eliminate 14,000 roles to redirect spending toward new artificial intelligence technologies, a move disclosed by executive Beth Galetti.
- Chegg, Salesforce and UPS recently announced major reductions that cited automation or AI, including Chegg trimming 45% of staff, Salesforce cutting 4,000 customer-service roles and UPS shedding 48,000 jobs since last year.
- Researchers report mixed evidence on displacement, with a St. Louis Fed study linking higher AI exposure to rising unemployment and a University of Pittsburgh analysis finding the clearest early impact in administrative and office support roles after ChatGPT’s launch.
- Despite the cuts, Amazon reported stronger-than-expected July results, including a 13% year-over-year sales increase to $167.7 billion.
- Analysts note Amazon’s scale enables faster automation of certain functions, while career advisers urge workers to emphasize human strengths such as empathy, creativity, critical thinking and adaptability.