Amazon will lay off tens of thousands of office workers as the e-commerce and technology giant cuts costs amid growing investments in artificial intelligence, according to multiple US media reports.
About 30,000 positions are expected to be affected in the job reduction exercise, which is set to begin on Tuesday, reports from the Wall Street Journal, New York Times, and other outlets indicated, citing anonymous sources.
The move represents nearly 10 percent of Amazon’s 350,000 office jobs, though it will not affect the company’s much larger distribution and warehouse workforce, which accounts for most of its 1.5 million employees worldwide.
Seattle-based Amazon did not immediately respond to inquiries from AFP regarding the reported layoffs.
Shares of Amazon closed slightly higher on Monday as news of the potential cost-cutting spread across markets.
Amazon’s Chief Executive Officer, Andy Jassy, has repeatedly emphasized the company’s focus on AI as a major driver of efficiency and innovation.
“Our conviction that AI will change every customer experience is starting to play out,” Jassy said during the company’s last quarterly earnings call.
Amazon, which will report earnings on Thursday, is under pressure — alongside other major tech firms — to demonstrate tangible returns from its large-scale AI investments.
According to Sky Canaves, Principal Analyst at Emarketer, Amazon’s cloud computing arm, Amazon Web Services (AWS), will be closely watched for performance.
“AWS will be under pressure to both show revenue acceleration and operating margin improvement in light of its massive AI investments,” Canaves said.
The layoffs come shortly after Amazon experienced a significant AWS outage that disrupted internet access for millions of users worldwide.
Popular platforms, including Amazon Prime Video, Disney+, Airbnb, Snapchat, Fortnite, and Duolingo, were among the services affected, while messaging apps Signal and WhatsApp experienced disruptions in parts of Europe, according to Downdetector.
Some banks, including Lloyd’s, also reported interruptions linked to the cloud service failure.
Amazon later said the issue had been traced to a Domain Name System (DNS) error — the online infrastructure that directs internet traffic.
AWS remains the global leader in cloud computing, ahead of Microsoft Azure and Google Cloud, and serves as a backbone for businesses, governments, and digital services around the world.