Amazon Cuts 14,000 Jobs to Fund AI Push as Company Struggles to Keep Pace with Microsoft
Summary
Amazon slashes 14,000 corporate jobs to fund massive AI investments as the tech giant desperately tries to catch up with Microsoft in the artificial intelligence race, with CEO Andy Jassy warning more workforce reductions are coming as AI transforms the company.
Key Points
- Amazon cuts 14,000 corporate jobs (4% of workforce) to reduce bureaucracy and shift resources toward AI investments amid investor pressure to tighten finances
- The company faces lagging AI growth compared to Microsoft and other rivals despite being a dominant cloud-computing giant, with disappointing AI business gains reported in July
- CEO Andy Jassy expects AI efficiency gains to reduce total corporate workforce over the next few years as generative AI transforms job requirements across the company