CEO Andy Jassy had signaled that Amazon’s workforce would likely get smaller as the company increases its use of artificial intelligence to complete tasks normally handled by people.

The company is looking to cut costs starting this week as it continues to spend aggressively on artificial intelligence. Another round of cuts is expected in January.

“While Anthropic, the company behind the Claude AI chatbot, reiterated its commitment to Amazon, we see this move with Google speaking to the capacity-constrained AI and data center market, as well as prudently diversifying its exposure,” veteran fund manager Chris Versace wrote for TheStreet Pro.

AWS’s market share has fallen from nearly 50% in 2018 to 38% as Microsoft, Google and upstart cloud companies gain ground rapidly. Amazon is replacing executives and reorganizing teams to speed up AI product launches and restore AWS’s once-commanding competitive advantage.