Over the last year, US corporate leaders have often explained layoffs by saying the positions were no longer needed because artificial intelligence had made their companies more efficient, replacing humans with computers. But some economists and technology analysts have expressed skepticism about such justifications and instead think that such workforce cuts are driven by factors like the impact of tariffs, overhiring during the Covid-19 pandemic and perhaps simple maximising of profits.
Anxieties about AI putting people out of jobs is bubbling over: A Reuters/Ipsos poll from August 2025 found 71% of Americans feared permanent job loss as a result of AI. Last week, Amazon announced 16,000 roles across the company would be slashed, adding to a total of more than 30,000 job cuts since October 2025. The move coincided with Amazon's push toward AI development, though the tech giant attributed the reductions to an attempt to slash bureaucracy, not the technology.
The riddle of the Slovenian Sphinx has been solved, begins New York Times columnist Maureen Dowd's brutal Sunday review of the first lady's vanity project, MELANIA, the documentary. It turns out there is no riddle, no enigma, no mystery, no dark anguish, Dowd writes of the $40 million Amazon project with a $35 million marketing budget adding that the movie shows Melania Trump exactly where she wants to be, in the bosom of a corrupt family that is prostituting the People's House.
Beth Galetti, a senior vice president at the ecommerce company, made the announcement Wednesday in a blog post. The latest reductions follow a round of job cuts in October, when Amazon laid off 14,000 workers. She said U.S.-based staff would be given 90 days to look for a new role internally. Those who are unsuccessful or don't want a new job will be offered severance pay, outplacement services and health insurance benefits, she said.
Amazon is set to fire 370 people at its European headquarters in Luxembourg in the coming weeks, as Bloomberg reports. That accounts for about 8.5 percent of the workforce. Amazon initially planned to reduce its headcount there by 470, but under European Union law, companies have to negotiate layoffs with employee reps and, in some cases, governments. Amazon reportedly told employees at the European HQ in a memo the layoffs are "adjustments that reflect business needs and local strategies."
Beth Galetti, a senior vice president at Amazon, wrote in a note to staff that the move would make the company "even stronger" by shifting resources "to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs". She acknowledged that some would question the move given the company was performing well. At the end of July, Amazon reported second quarter results which beat Wall Street expectations on several counts, including a 13% year over year increase in sales to $167.7bn (125bn).
I asked Bridgewater founder Ray Dalio yesterday if he would want a digital twin of his late mother to talk to. He shook his head: "I don't know how it would affect the grieving process or my memory of her. I just don't know." We had just come off stage at the Fortune Global Forum in Riyadh after a wide-ranging conversation about investing, the global economy and the principals behind how he's building a " Digital Ray."
Moving forward, we remain focused on our mission to help product teams launch delightful products," Roy wrote in a memo posted by an employee to Amazon's internal Slack. "In support of this mission, I encourage you all to: Focus on the work that most directly impacts our customers, lean in on Al to enhance your effectiveness, [and] raise your hand when you see opportunities to simplify or eliminate unnecessary processes.
"While we're proud of our successes in first-party AAA game development and publishing, we have made the difficult decision to halt a significant amount of our first-party AAA game development work--specifically around MMOs--within Amazon Game Studios, including making significant role reductions in our studios in Irvine and San Diego, as well as our central publishing team," he said.
On Tuesday morning, some Amazon employees learned they had lost their jobs - through text messages. Amazon sent two text messages early Tuesday to inform employees their jobs had been eliminated, according to people familiar with the matter and screenshots reviewed by Business Insider. One message urged affected employees to check their personal or work email before coming to the office. A second text directed them to call a help desk if they hadn't received "an email message about your role."
Amazon MGM Studios, the company's TV and movie arm, was hit during the broader company layoffs announced Tuesday. Amazon said it would cut 14,000 jobs overall to slim down as it leans into AI. Among the big names affected at Amazon MGM Studios were Donna Rosenstein, who was head of series casting; and Genna Terranova, head of global programming for MGM Studios and Prime Video. Also cut were drama series exec Meggie Choi and creative exec Nathan Kitada.
are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs.
According to Amazon CEO Andy Jassy, this week's 14,000 layoffs were not caused by a focus on AI or to cut costs. Instead, the massive layoffs are intended to kickstart a cultural change within the company. Amazon reported quarterly revenue of $180.2 billion, a 13% increase year-on-year. Profits amounted to $21 billion. Nevertheless, the company is taking a $1.8 billion charge for severance payments this quarter.
