AI, Amazon and will lay off
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Amazon's HR chief also explained the 14,000 cuts in part by saying AI is helping companies innovate faster.
Amazon has announced an approximately 14,000 person reduction in its corporate workforce. The news follows an earlier report from Reuters that up to 30,000 people could be let go. However, the exact number of layoffs is unclear, with the 14,000 figure being cushioned by planned hirings.
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Amazon defends ambitious AI strategy that could prevent 600,000 future hires through innovation
Amazon's AI systems and advanced technology will create a "safe, more productive" environment for employees as the e-commerce giant plans to avoid hiring 600,000 workers by 2033.
Welcome to Tech In Depth, our daily newsletter about the business of tech from Bloomberg’s journalists around the world. Today, Matt Day sizes up Amazon’s place in the changing cloud computing market.
Amazon has announced it will be scything more than 14,000 jobs as part of its efforts to streamline operations in the era of artificial intelligence.
The decision to lay off 30,000 employees marks the largest corporate job cuts in Amazon’s history, according to CNBC. The layoffs will reduce “bureaucracy” and help Amazon invest “in our biggest bets”, Beth Galetti, senior vice president of people experience and technology at Amazon, wrote in a blog post.
The other thing that makes this seem different from past layoffs is who is affected. Amazon has already optimized its warehouses. It isn’t cutting the workers who handle packages—in fact, the company plans to hire 250,000 seasonal employees to ramp up for the holidays.
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Amazon layoffs, Qualcomm's AI chips, Airbnb cracks down on Halloween and more in Morning Squawk
Amazon CEO Andy Jassy said earlier this year that the Washington-based company could shrink its workforce by embracing AI. The firm is part of a cohort of large-cap companies that have seen their AI-related productivity increase as the technology becomes mainstream.