Amazon has confirmed that it plans to axe 14,000 jobs in its corporate division as part of a broader effort to become more lean and efficient. The move is driven by the tech giant's ambitious investment in artificial intelligence (AI) technology, which will enable companies to innovate at an accelerated pace.
In a note to staff, senior vice president Beth Galetti said that Amazon needs to be "organised more leanly" to take advantage of the opportunities presented by AI. She acknowledged that some employees may question the move, given the company's strong performance in recent times.
Amazon has already cut thousands of jobs in its corporate division over the past few years, including 27,000 roles in 2022. However, slower growth for its cloud business and concerns among investors about the company's profit guidance have sparked skepticism about whether Amazon's AI investments will pay off.
The job losses are expected to affect around 350,000 corporate workers worldwide, although it is not clear how many of these roles will be affected in the UK. Amazon has more than 1.5 million employees globally, making it one of the largest employers in the world.
As tech analyst Ben Barringer notes, "Jobs in software development are already being shed thanks to the capabilities of some of these AI tools... The big companies will be looking to redistribute and restructure their workforces accordingly." This sentiment has been echoed by Amazon boss Andy Jassy, who has warned that machines may take over routine tasks as AI becomes more prevalent.
The move is part of a broader trend in the tech industry, where companies are investing heavily in AI technology and automation. Microsoft recently announced plans to cut up to 9,000 jobs as it invests in AI, highlighting the challenges facing companies that want to harness the power of emerging technologies while minimizing disruption to their workforces.
Amazon's decision will be closely watched by investors and analysts, who will be keen to see how the company's AI investments pay off in terms of revenue growth and profitability.
In a note to staff, senior vice president Beth Galetti said that Amazon needs to be "organised more leanly" to take advantage of the opportunities presented by AI. She acknowledged that some employees may question the move, given the company's strong performance in recent times.
Amazon has already cut thousands of jobs in its corporate division over the past few years, including 27,000 roles in 2022. However, slower growth for its cloud business and concerns among investors about the company's profit guidance have sparked skepticism about whether Amazon's AI investments will pay off.
The job losses are expected to affect around 350,000 corporate workers worldwide, although it is not clear how many of these roles will be affected in the UK. Amazon has more than 1.5 million employees globally, making it one of the largest employers in the world.
As tech analyst Ben Barringer notes, "Jobs in software development are already being shed thanks to the capabilities of some of these AI tools... The big companies will be looking to redistribute and restructure their workforces accordingly." This sentiment has been echoed by Amazon boss Andy Jassy, who has warned that machines may take over routine tasks as AI becomes more prevalent.
The move is part of a broader trend in the tech industry, where companies are investing heavily in AI technology and automation. Microsoft recently announced plans to cut up to 9,000 jobs as it invests in AI, highlighting the challenges facing companies that want to harness the power of emerging technologies while minimizing disruption to their workforces.
Amazon's decision will be closely watched by investors and analysts, who will be keen to see how the company's AI investments pay off in terms of revenue growth and profitability.