Amazon cuts staff due to AI: other tech giants voice similar forecasts

Amazon CEO Andy Jassy stated that the company will reduce staff due to the implementation of artificial intelligence, which replaces people in workplaces. Other technology giants are also making similar predictions. According to international organizations, AI could cost millions of people their jobs worldwide, while simultaneously creating new vacancies and changing the labor market forever.

This is reported by UNN with reference to Deutsche Welle.

DetailsAmazon CEO Andy Jassy recently announced that his company “will reduce its workforce as artificial intelligence begins to replace people.” He also warned that the implementation of AI technology “will affect a wide range of jobs and industries.”

As the publication notes, Jassy is not alone in his predictions: many other companies have issued similar warnings, explaining how breakthroughs in AI can change their production processes and workforces.

Thus, in May, the CEO of the startup Anthropic told the American news website Axios that within the next five years, AI could “cost half of all entry-level ‘white-collar’ jobs.”

Over the past three years, American companies whose shares are traded on the stock market have reduced their number of employees by 3.5%

And adds that over the past decade, every fifth S&P 500 company has reduced its staff.

In recent months, a number of technology companies, including Microsoft, Hewlett Packard, and Procter & Gamble, have announced thousands of layoffs.

Recently, Shopify, which provides retail services, stated that top managers who request additional staff must first prove that artificial intelligence cannot perform these tasks. Duolingo, a language learning app, plans to gradually replace its freelance workers with AI technology.

Fears of mass unemployment due to AI implementationAccording to estimates by the Organization for Economic Cooperation and Development (OECD), a quarter of jobs worldwide are at high risk of being replaced by AI-powered automation.

However, this technology is also expected to create new opportunities and increase labor productivity. A report by the Davos World Economic Forum (WEF), published earlier this year, predicts that by 2030, technological transformations will lead to the disappearance of about 92 million existing jobs and the creation of 170 million new ones.

Developed countries are likely to be affected by AI-related changes more than developing ones. A study published by the International Monetary Fund (IMF) in 2024 found that this technology could affect 60% of jobs in developed countries – approximately half negatively, and the other half with a positive effect.

IMF experts concluded that about 40% of jobs in emerging markets and 26% in low-income countries will be affected by such changes. And while the initial impact of AI may be less noticeable in these labor markets, they will also benefit from the productivity gains that this technology promises.

Who will be most affected by AIDuring past technological breakthroughs, the main victims were low-skilled workers and “blue-collar” workers, for example, as industrial robots replaced factory workers.

A study conducted by the Pew Research Center in the US showed that owners of professions related to information gathering and data analysis, such as web developers, technical writers, accountants, data entry workers, and others, will be at high risk of being replaced by AI.

The safest professions in this case, as expected, will remain those with widespread use of manual labor that are not so easy to automate, such as builders, childcare workers, or firefighters.

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