E-commerce and tech giant Amazon will lay off tens of thousands of office workers as part of cost-cutting measures amid massive investments in artificial intelligence, US media reports.
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Multiple news outlets reported that about 30,000 positions would be cut in the hiring, which is expected to begin Tuesday.
The reduction will represent about 10 percent of Amazon's roughly 350,000 office jobs, but will reportedly not affect distribution and warehouse workers, who make up the majority of the company's more than 1.5 million employees.
It is not yet clear whether this will affect Irish employees.
Amazon has six sites, including the Amazon Fulfillment Center at Baldonnell Business Park in Dublin, Ireland. In September 2024, the company announced that it was hiring approximately 6,500 people in Ireland.
AI impacts
Amazon Chief Executive Andy Jassy praised AI's ability to streamline workplace operations, from engaging with customers online to making offices more efficient.
"Our conviction that AI will transform all customer experiences is now starting to manifest," said Jassy during Amazon's last quarterly earnings review.
Amazon will next report earnings on Thursday and is among the tech giants facing pressure to show the benefits of its big investments in AI.
"AWS will be under pressure to show revenue acceleration and operating profit improvement in light of its massive AI investments," said Sky Canaves, principal analyst at eMarketer, referring to Amazon Web Services' cloud computing unit.
Popular internet services, from streaming platforms to messaging services to banking, were offline for hours last week due to an outage in Amazon's critical cloud network, illustrating just how dependent internet life is on the tech titan.
The outage affected streaming platforms including Amazon's Prime Video service and Disney+, as well as Perplexity AI, the Fortnite game, Airbnb, Snapchat, and Duolingo.
Downdetector reports that mobile telephone services and messaging apps such as Signal and WhatsApp have been affected in Europe.
People also reported having problems reaching websites, including Amazon's own e-commerce shop.
It also affected some banks, such as Lloyds, who pointed to the Amazon Web Services (AWS) cloud computing platform as the source.
Amazon said it had identified the "trigger for the incident" as an issue involving the Domain Name System (DNS), which acts as an Internet address book that manages data traffic.
Businesses, governments, and consumers around the world rely on their infrastructure for online operations.
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