Experts dismiss AI link in Amazon’s major 16,000 job cuts

Amazon has announced a new round of corporate job reductions affecting around 16,000 roles worldwide; however, the company insists the move is aimed at streamlining operations rather than replacing workers with AI. Instead, the layoffs are intended to reduce management layers and bureaucracy following years of rapid expansion.

Moreover, experts broadly support Amazon’s explanation, noting that the cuts do not signal widespread AI-driven job displacement. Although Amazon’s chief executive has acknowledged that generative AI could reduce corporate workforce needs in the future, analysts emphasise that current AI systems are not yet capable of replacing complex corporate roles at scale.

Meanwhile, the decision comes as Amazon continues to adjust after significant pandemic-era workforce growth, when online shopping surged, and the company expanded rapidly. As consumer behaviour has shifted back towards physical retail, the company has therefore focused on cost-cutting and workforce resizing.

Finally, specialists caution against overstating AI’s immediate impact on employment. While AI may affect some entry-level or routine tasks, experts argue that its capabilities have levelled off, meaning human expertise remains essential across most corporate functions.

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