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The Digest:

Amazon is preparing to lay off approximately 30,000 office employees, representing nearly 10% of its corporate workforce, according to multiple U.S. media reports. The move, part of a broader cost-trimming initiative, comes as the tech giant intensifies its investments in artificial intelligence while maintaining its massive warehouse and distribution workforce.

Key Points:
  • Amazon plans to cut 30,000 corporate jobs, nearly 10% of its office workforce.
  • The layoffs will not affect distribution centers or warehouse employees.
  • Reports indicate the cost-cutting measure will begin as early as Tuesday.
  • CEO Andy Jassy has emphasized AI's potential to streamline operations.
  • The company faces pressure to show returns on its massive AI investments.
  • The news follows a recent AWS outage that disrupted major online services.
  • Amazon shares rose slightly as reports of the restructuring emerged.
As Amazon pivots toward an AI-driven future, these cuts reflect the ongoing transformation of the tech industry, where efficiency and automation are reshaping traditional corporate structures.

Sources: Wall Street Journal, New York Times