Amazon AWS Lays Off Hundreds Amid AI Strategy Shift

Amazon is aggressively expanding its AI workforce, currently advertising nearly 2,900 AI-related positions, significantly outpacing competitors like Meta, Google, and Microsoft. CEO Andy Jassy has emphasized AI adoption across all business areas, encouraging employees to integrate AI into their work, though this push has sparked some internal backlash. Concurrently, Amazon is undergoing a workforce reshaping, including layoffs of several hundred employees within its Amazon Web Services (AWS) division, as the company restructures to optimize resources and invest heavily in AI and data center infrastructure. Despite AWS's strong financial performance, the cuts reflect a strategic shift towards automation and AI efficiency, with Jassy noting that generative AI will reduce the need for certain human roles while increasing demand for others. Amazon's compensation for AI and engineering roles remains competitive, supporting its goal of creating a lean, startup-like workforce focused on innovation. These developments highlight Amazon's dual approach of expanding AI talent while streamlining its workforce to maintain long-term efficiency and growth.