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Amazon’s 16,000 Corporate Layoffs Put AI Rationale Under Scrutiny

The company says most reductions stem from restructuring.

FILE - The Amazon logo is displayed at a news conference in New York on Sept. 28, 2011. (AP Photo/Mark Lennihan, File)
FILE - This undated combination of photos shows clockwise from top left the company logos for Amazon, Target, Lufthansa Group, UPS, ConocoPhillips, Intel, Microsoft, Procter & Gamble and Nestle. (AP Photo, File)

Overview

  • Internal emails from AWS leaders urged heavier use of technology and AI and said U.S. and Canada layoff notifications are complete, with other regions following local processes.
  • Amazon said AI was not the reason behind the vast majority of the reductions, describing the move as reducing layers and bureaucracy to boost speed and ownership.
  • Economists say evidence that AI directly caused the cuts is limited, and a Jan. 16 Goldman Sachs tracker found very few layoffs attributed to AI at that point.
  • Regulatory notices show roughly 5,000 additional retail jobs will be eliminated with the closure of most Amazon Go and Amazon Fresh stores.
  • Accounts from long‑tenured former employees describe exits as not performance-related and linked to cost-cutting or automation, as firms like Pinterest and Dow explicitly connect their own layoffs to AI-focused strategies.