Quick overview

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Microsoft (MSFT) is reportedly planning thousands of layoffs, while Amazon (AMZN) CEO Andy Jassy stated that the company will reduce its workforce in the upcoming years. According to Bloomberg, which cited unnamed sources, Microsoft is anticipated to publicly announce the cuts, primarily targeting its sales teams, early next month.

 

Microsoft refused to confirm the layoffs. “Teams assess business priorities and make sure they are in line with the appropriate opportunities for strategic growth, as they usually do throughout the year,” a spokesperson stated.

The announcement followed Jassy’s Tuesday statement that AI will result in job losses at Amazon. The way we approach our work should evolve as we incorporate more generative AI and autonomous agents. In a memo to staff, Jassy stated, “We will need more people in different roles and fewer people in some of the positions that exist today.”

It’s difficult to predict exactly where this will end up. We gain efficiency from implementing AI widely throughout the organization, and anticipate reducing the overall corporate workforce over the coming years.

Amazon is utilizing generative AI in its internal operations, according to Andy Jassy. This technology is being employed for tasks such as demand forecasting and inventory management within its delivery system. According to a report from Bloomberg, some corporate employees at Amazon have been instructed to relocate closer to their teams and managers.

Many of them would have to relocate across the United States to cities like Seattle and Washington, DC.

Meanwhile, Microsoft and Amazon have been investing billions to further their AI initiatives. Over the past few years, Amazon has continuously reported higher capital expenditures than its fellow Big Tech “hyperscalers,” primarily due to its investments in AI infrastructure. That trend is anticipated to continue in 2025.