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Did artificial intelligence really drive layoffs at Amazon and other firms? It can be hard to tell

Nearly 55,000 U.S. layoffs in 2025 were attributed to AI as companies balance cost-cutting with $80 billion AI infrastructure investments, analysts caution over simplified narratives.

  • Amazon confirmed last week 16,000 additional corporate layoffs, bringing total job cuts to roughly 30,000 across late 2025 and early 2026.
  • Company leaders said the cuts simplify structure and speed decisions, while others argue layoffs freed cash to fund massive GPU purchases and AI infrastructure at Amazon Web Services.
  • Departments across AWS, retail, Prime Video and human resources were cut, and Amazon workers received 90 days' notice, severance and outplacement support.
  • Amazon workers faced disruption despite company support, as layoffs aim to free cash for AI infrastructure spending amid industry strain, analysts say.
  • Economists note it remains uncertain if AI caused layoffs as Pinterest and Dow cited AI while a Goldman Sachs report and the bank's Jan. 16 tracker found limited effects.
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58 Articles

KXRMKXRM
+6 Reposted by 6 other sources
Center

Did artificial intelligence really drive layoffs at Amazon and other firms?

Not all companies are signaling AI as a reason for cuts.

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San Diego Union TribuneSan Diego Union Tribune
+32 Reposted by 32 other sources
Center

Some companies tie AI to layoffs, but the reality is more complicated

By MATT O’BRIEN, Associated Press Technology Writer The one thing N. Lee Plumb knows for sure about being laid off from Amazon last week is that it wasn’t a failure to get on board with the company’s artificial intelligence plans. Related Articles What to ask when it’s time to move up 10 best sites to sell your stuff San Diego, developer at impasse over Turquoise tower in Pacific Beach …

·San Diego, United States
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Associated Press NewsAssociated Press News
+5 Reposted by 5 other sources
Lean Left

Did artificial intelligence really drive layoffs at Amazon and other firms? It can be hard to tell

When Amazon announced it was cutting 16,000 corporate jobs, many assumed it was the latest phase of CEO Andy Jassy’s push to reduce the corporate workforce as AI brings more efficiency gains.

·United States
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IBTimes UK broke the news in United Kingdom on Saturday, January 31, 2026.
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