Amazon's Strategic Shift: Massive Job Cuts and AI Integration

Amazon is set to slash up to 30,000 corporate positions starting Tuesday, driven by the need to manage expenses related to pandemic overhiring. Sources indicate this cut represents nearly 10% of its corporate workforce, marking Amazon's largest downsizing since 2022. The reduction is part of a broader strategy to streamline operations, with divisions such as human resources and Amazon Web Services potentially impacted.

In a move to reduce bureaucracy, CEO Andy Jassy is pushing for efficiency, partly catalyzed by advancements in artificial intelligence tools that automate routine tasks. Jassy's initiatives include reducing management layers and establishing an anonymous line to identify inefficiencies. Despite AI productivity gains, Amazon is also pressured to offset investments in building AI infrastructure.

Amidst workforce changes, Amazon plans 250,000 seasonal hires for its warehouses. Despite AWS reporting a 17.5% sales increase, it trails behind Google's and Microsoft's cloud units. Amazon remains optimistic about the holiday season but also faces challenges like an AWS internet outage. The tech giant will soon release its third-quarter earnings.