Amazon CEO (AMZN), Andy Jassy, said that the company would reduce its workforce in the coming years, and Microsoft (MSFT) would plan thousands of layoffs, just like the two companies invest billions in artificial intelligence efforts.
Microsoft should announce the cuts, mainly intended for its sales teams, early next month, according to Bloomberg, which cited anonymous sources.
Microsoft refused to confirm the layoffs to Yahoo Finance. “As they generally do all year round, the teams assess commercial priorities and ensure that they align themselves with the right strategic growth opportunities,” said a spokesperson.
The news came after Jassy from Amazon said on Tuesday that AI would cause job cuts in its own business.
“While we are deploying more AI and generative agents, this should change the way our work is finished. We will need fewer people who are doing work that is underway today, and more people who do other types of jobs,” said Jassy A memo to employees.
“It is difficult to know exactly where it takes place over time, but in the coming years, we expect it to reduce our total workforce of the company as we obtain efficiency gains by largely using AI throughout the business.”
Jassy said that Amazon “uses a generative AI largely in our internal operations” for tasks such as stock management and demand forecasting in its delivery system.
The CEO said, due to AI, “we will be able to focus less on heart work and more on strategically reflection on how to improve customer experiences and invent new ones.” The comments were met employees’ backlash.
Some employees of Amazon companies face an order to move closer to their managers and teams, Bloomberg reported on Thursday. The mandate required that many of them move across the United States in Seattle, Washington DC and other hubs, its sources said.
Meanwhile, Amazon and Microsoft spent billions to advance their AI efforts. Amazon has always reported higher capital expenses than its “hyperscales” colleagues from Big Tech in recent years, driven by its investments in IA infrastructure. In 2025, this trend should continue.
Amazon has planned that it will spend about $ 105 billion, much higher than its peers, the vast majority going to AI infrastructure for its cloud segment, Amazon Web Services. Microsoft is expected to spend $ 80 billion in 2025 to build AI data centers.
Amazon and Microsoft have both announced layoffs in recent years. Microsoft dismissed 3% of its workforce in May after an optimistic profits report. Amazon Coupé More than 27,000 jobs Between 2022 and 2023, just as Jassy praised his IA efforts. Business Licensed 100 other workers In May in the middle of the CEO aggressive effort has Cut intermediate management While trying to execute Amazon as “The biggest startup in the world. “”
