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7h ago

Amazon Predicts AI-Driven Corporate Job Cuts as It Expands AI Infrastructure

Generative AI deployments, fueled by newly announced data center projects, promise efficiency gains that Amazon expects will shrink its corporate headcount.

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Overview

  • CEO Andy Jassy said in an employee memo that generative AI tools and agents are expected to cut the company’s total corporate workforce over the next few years.
  • The company has eliminated over 27,000 corporate positions since 2022; further reductions are expected as AI adoption accelerates.
  • Amazon has over 1,000 generative AI services and applications in use or development to optimise inventory management, demand forecasting, customer service, product listings and fulfillment operations.
  • Amazon plans to invest roughly $10 billion in a North Carolina AI campus and up to $20 billion on data centres across Pennsylvania, Mississippi, Indiana and Ohio to support its growing AI infrastructure.
  • Industry experts, including Anthropic CEO Dario Amodei, warn that AI could displace significant numbers of white-collar jobs across multiple sectors.