
Amazon is set to lay off 14,000 employees, signaling the potential start of the AI’s impact on jobs. While Amazon has not explicitly attributed the job cuts to AI, it is evident that technology played a significant role in the decision to implement some of its most extensive layoffs yet. This move by Amazon could pave the way for other major companies to follow suit, indicating a potential wave of mass AI-related job reductions in the future. Leaders at Amazon are emphasizing the importance of leveraging AI for improved efficiency following the recent layoffs. The impact of these cuts primarily affected early and mid-level managers in the retail sector, with concerns rising that AWS could be next in line for significant reductions next year. These job cuts serve as a bold experiment for Amazon as it seeks to demonstrate the value and efficiency of its AI tools. By showcasing how effectively these tools can streamline operations, Amazon aims to prove their worth beyond mere claims or marketing efforts. While this strategy poses considerable risks for Amazon’s business and reputation, especially regarding the credibility of its AI products, the company may view it as a necessary step given the circumstances.