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Job Cuts at Amazon: Impact of Artificial Intelligence on Workforce

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by Giorgi Kostiuk

5 hours ago


Amazon has announced potential job cuts related to the increased use of artificial intelligence. CEO Andy Jassy highlighted AI's potential for optimizing operations and enhancing efficiency.

AI as a Change Factor

In a message to staff, Jassy described generative AI as a 'once-in-a-lifetime' technology. He emphasized that Amazon is already using over 1,000 generative AI services and applications, and that this represents just 'a small fraction of what we will ultimately build.'

Calls for AI Education

Jassy urged employees to broaden their understanding of AI by attending workshops and training sessions. He underlined the need to adapt to new work conditions, which will allow the company to 'deliver solutions to customers more quickly and effectively.'

Company and Industry Situation

Since the start of 2022, Amazon has already cut around 27,000 jobs and anticipates further reductions. The company's shares have fallen by 2.5% this year. Leading firms in the tech sector, such as Microsoft and Shopify, have also reported job cuts and restructuring in favor of AI.

Thus, the integration of artificial intelligence at Amazon may lead to significant changes in the company's workforce policy. Employees are encouraged to adapt to new conditions by developing AI-related skills.

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