Amazon cuts 14,000 corporate jobs amid AI restructuring

Amazon just made its biggest corporate job cuts in recent years…14,000 positions as the company says it’s working to become “leaner in the AI era.”

Transcript

00:00Amazon said it is cutting 14,000 jobs in one of the biggest rounds of layoffs in the company's

00:05history. The layoffs spanned across industries, ranging from advertising, recruitment, payments,

00:11Fire TV, even customer analytics. Its Audible unit was also affected, so really it was widespread

00:17and across the board. The pain might not be over yet at Amazon either. Employees at the company's

00:23AWS unit, this is its cloud division, worry that they could be next. The question now is,

00:28will other companies follow suit and follow Amazon's lead, especially as more and more

00:33companies are adopting AI within their workflows and just their business models in general?

00:37Just this month, Meta announced job cuts and also told some employees that their work was going to

00:42be replaced by technology. You had another company like Chegg that cut 45% of its staff and attributed

00:48those layoffs to AI. And for Amazon specifically, this is a company that Wall Street has not really

00:54been rewarding of late. Amazon, of course, is one of the mag seven stocks. These are the big,

00:59big tech stocks that really dominate the market right now. But if you look at the returns of those

01:04magnificent seven stocks over the past five years, Amazon is the only one that underperforms the broader

01:09market. Clearly here, there's a move within Amazon to try to speed up, become the world's largest

01:14startup, improve efficiencies, and just get better.