Amazon's Operating Income Surges 23% as AI Drives Job Cuts
Amazon's operating income surged by 23% in the first quarter of 2025, hitting $11.5 billion. Meanwhile, the tech giant is reshaping its workforce, with job cuts across various units and a significant reduction planned due to generative AI adoption.
Amazon's AWS unit, a key driver of growth, saw sales rise by 17% to $29.3 billion in the first quarter. However, the cloud computing arm is set to reduce hundreds of jobs. This follows layoffs in Amazon's Books, Devices, Services, and Wondery units earlier this year.
The company's overall workforce reduction plans are linked to the increasing use of generative AI. CEO Andy Jassy confirmed that AI will lead to a decrease in the total corporate workforce over the next few years. Amazon previously laid off 18,000 employees in 2022 and 2023, with recent cuts including the closure of all physical stores in Canada.
Amazon is not alone in its workforce adjustments. Microsoft announced layoffs affecting nearly 4% of its workforce, around 6,000 employees, citing AI infrastructure costs. CrowdStrike plans to cut 500 jobs, and Meta is laying off 5% of its lowest performers, with more cuts expected.
The rapid adoption of AI in corporations worldwide is driving job losses, with Amazon, Microsoft, CrowdStrike, and Meta all announcing significant layoffs. Amazon's operating income growth, driven by AWS, suggests a shift in its business model, with AI set to play an increasingly prominent role in its operations and workforce.
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