Amazon to Cut Corporate Jobs, Microsoft Plans More Layoffs
Work News | New Stardom
Photo by Tim van der Kuip
Two of the world’s largest tech employers are scaling back jobs as part of their shift toward artificial intelligence.
Amazon CEO Andy Jassy said this week that AI will reduce the company’s total corporate workforce over time, citing internal efficiency gains and a shift toward “agentic systems” that automate both operational and strategic tasks. Amazon is currently building or running over 1,000 generative AI services and has committed $100 billion this year to expand its AI and data infrastructure.
In a company-wide memo published Tuesday, Jassy wrote: “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” adding that agents will become “teammates” capable of writing code, running research, and automating daily tasks across the company.
Microsoft, meanwhile, is preparing another round of layoffs, this time targeting thousands of roles in sales, according to Bloomberg reporting confirmed by Reuters. The cuts follow a previous reduction of 6,000 jobs in May. While Microsoft has not officially commented on the scale of the planned cuts, the company has made clear that AI is central to its long-term workforce and business strategy.
Both companies are investing heavily in AI-led transformation. Amazon’s internal operations, customer service, and shopping tools are increasingly powered by generative AI, while Microsoft continues to expand Copilot across its software suite and productivity tools. Together, the two announcements reinforce a broader shift: efficiency-driven AI integration is no longer hypothetical. It is actively reshaping headcount and internal workflows across major tech firms.
The news arrives amid wider industry movement. Shopify, Crowdstrike, Duolingo, and BT have each pointed to AI adoption as a factor in recent or planned headcount reductions. For white-collar employees, the transition from augmentation to automation appears to be accelerating.
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New Stardom is an independent magazine covering the Future of Work, AI, and emerging job trends.
