Amazon's growing use of AI and recent job cuts spark concerns among employees about job security

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Amazon's growing use of AI and recent job cuts spark concerns among employees about job security

Bitget-RWA2025/11/25 10:50

By:Bitget-RWA

- Amazon announced 14,000 corporate layoffs (2025) and a $50B AI infrastructure investment, targeting engineers and white-collar roles to prioritize automation-driven efficiency. - Leaked plans reveal 75% warehouse automation could displace 600,000 jobs, sparking concerns about blue-collar worker displacement despite claims of "extending human capacity." - The $2.5B upskilling initiative aims to prepare 50 million workers for AI-driven shifts, yet critics question if reskilling can offset massive job losse

Amazon’s unprecedented layoff of 14,000 corporate employees and its $50 billion commitment to AI infrastructure have sparked renewed discussions about how automation will reshape employment. The job cuts, which mainly impacted engineers and other white-collar professionals,

align with leaked internal strategies

indicating

Amazon

may automate up to three-quarters of its warehouse functions, a move that could put hundreds of thousands of positions at risk. At the same time, Amazon’s efforts to establish the first AI and high-performance computing (HPC) infrastructure tailored for government use highlight its ambition to lead in the AI sector

as reported

Announced in October 2025, these layoffs represent the largest workforce reduction in Amazon’s 31-year history. Nearly 40% of the 4,700 U.S. jobs eliminated were engineering positions

according to official disclosures

. The restructuring affected software engineers, product leads, and high-level executives alike, as CEO Andy Jassy aimed to make the company more agile and less bureaucratic. “This wave of AI is the most revolutionary technology since the advent of the Internet,” wrote HR leader Beth Galetti in a company memo,

describing the layoffs as essential

for fostering innovation within a leaner organization. Amazon has also suggested that more job cuts could follow in January 2026, after the holiday period.

Meanwhile, Amazon Web Services (AWS)

revealed a $50 billion plan

to develop AI infrastructure for government, which includes 1.3 gigawatts of computing power across both classified and public cloud environments. Led by AWS CEO Matt Garman, this project aims to equip federal agencies with advanced AI capabilities for uses such as cybersecurity and pharmaceutical research. Garman stated the initiative would “break down technological barriers” and strengthen America’s AI leadership, though some critics warn it signals a shift toward automation at the expense of jobs.

Amazon's growing use of AI and recent job cuts spark concerns among employees about job security image 0

The growing divide between Amazon’s AI-driven goals and its workforce changes is further illustrated by leaked documents indicating plans to automate 75% of warehouse tasks,

which could eliminate

up to 600,000 future roles. While Tye Brady, head of Amazon Robotics, maintains that their technology is meant to “enhance human abilities” rather than replace staff,

a New York Times article has fueled widespread worry

about the fate of blue-collar workers. These concerns are heightened by the recent corporate layoffs, as Jassy has openly connected AI-driven productivity improvements with workforce reductions in a June communication.

The consequences go beyond Amazon itself. As AI becomes more prevalent, companies from Microsoft to Northrop Grumman are wrestling with how to integrate automation while maintaining job stability. Steve O’Bryan of Northrop, for example, expects European defense budgets to remain high even after the Ukraine war, as countries rebuild their arsenals. Likewise, Amazon’s $2.5 billion reskilling program is designed to prepare 50 million people for the evolving job market, though some doubt these initiatives can truly counteract the scale of job loss.

Currently, Amazon’s approach—simultaneously reducing its workforce and investing in AI—mirrors a broader movement in the tech industry. As Bloomberg observes, major tech firms are increasingly focused on speed and efficiency, even as they face growing criticism over the social costs of technological advancement.

The unresolved issue is whether AI will

ultimately “expand human potential” or diminish it, leaving employees to adapt to a shifting economic environment.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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