According to US media sources, Amazon will lay off tens of thousands of office workers as the internet and e-commerce behemoth reduces expenses while increasing its expenditures in artificial intelligence.
According to several news outlets, a belt-tightening initiative that is anticipated to start on Tuesday would result in the loss of about 30,000 jobs.
According to reports, the cut will not impact the distribution and warehouse staff, which comprises the majority of Amazon’s more than 1.5 million employees, but it will represent about 10% of the company’s roughly 350,000 office employment.
Located in Seattle Regarding the proposed cuts that were revealed by the Wall Street Journal, New York Times, and other sites citing unnamed sources, Amazon did not respond to AFP’s inquiries.
Amazon shares ended the formal trading day up slightly as word of the potential cost-cutting move spread.
Amazon chief executive Andy Jassy has lauded the potential of AI to streamline workplace operations, from engaging with customers online to making offices more efficient.
“Our conviction that AI will change every customer experience is starting to play out,” Jassy said during Amazon’s last quarterly earnings call.
Amazon will next report earnings on Thursday, and is among the tech titans under pressure to show the merit of huge investments in AI.
“AWS will be under pressure to both show revenue acceleration and operating margin improvement in light of its massive AI investments,” Emarketer principal analyst Sky Canaves said, referring to Amazon Web Services cloud computing unit.
Amazon will also likely be pressed for details about a recent AWS outage.
The extent to which digital life depends on the computer giant is demonstrated by the fact that popular internet services, including banking, messaging, and streaming platforms, were unavailable for hours last week due to an outage in Amazon’s vital cloud network.
Perplexity AI, the Fortnite game, Airbnb, Snapchat, Duolingo, and streaming services like Disney+ and Amazon Prime Video were also impacted by the disturbance.
In Europe, Downdetector reported that Signal and WhatsApp messaging apps as well as mobile phone services were impacted.
Additionally, some complained of having trouble accessing websites, including Amazon’s own online store.
Some banks such as Lloyd’s were also impacted, and pointed to Amazon Web Services (AWS) cloud computing platform as the source.
Amazon said it identified the “trigger of the event” as an issue involving the Domain Name System (DNS), which acts as an internet address book directing data traffic.
AWS leads the cloud computing market, followed closely by Microsoft Azure, with Google Cloud in third place.
Businesses, governments and consumers worldwide rely on their infrastructure for online activities.
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