Amazon and Uber Announce Job Cuts as AI Integration Accelerates
Amazon has announced fresh job cuts in its Artificial General Intelligence (AGI) division, as the company continues to invest heavily in advanced AI models and products. The move comes months after the e-commerce giant eliminated around 16,000 corporate roles as part of a wider restructuring exercise.
The company has not disclosed how many employees were affected this time. However, it stated that the layoffs are part of a strategic shift to focus resources on projects that deliver the greatest value to customers.
The latest cuts, according to a Reuters report, will impact teams working under Amazon's AGI organisation, which is responsible for building next-generation AI systems. Despite the workforce reduction, Amazon maintains that artificial intelligence remains one of its biggest long-term priorities.
The restructuring follows leadership changes within the AGI unit. Earlier this year, Amazon reorganised its AI efforts under senior vice-president Peter DeSantis after key executives overseeing the division moved on.
This development underscores a growing trend across Silicon Valley. Technology companies are pouring billions of dollars into AI infrastructure while simultaneously trimming teams to improve efficiency and redirect investments.
Separately, Uber has announced that it will cut about 10 per cent of its customer service workforce as it expands the use of artificial intelligence across its operations. The company said the move is aimed at simplifying processes and improving efficiency, with AI expected to handle a larger share of customer interactions.
The ride-hailing company joins a growing list of firms using AI not just to build new products, but also to automate routine business functions. Customer support has emerged as one of the first areas where generative AI is replacing repetitive tasks once handled by humans.
Industry analysts say companies are entering a new phase of AI adoption. Siddhartha Chandurkar, Founder and CEO of ShepHertz Technologies, said, "The debate over AI and job displacement is too narrow. One could be hard-pressed to call this a matter of simply downsizing the workforce; in truth, it is an exercise in rethinking the way work gets done. With AI handling the repetitive, rules-based and data-intensive tasks with ease, human talent is put to better use on its strong suits: the kind of creative or strategic problem-solving and customer interaction that no algorithm can replicate."
He added, "For firms, AI is no longer some experimental exercise but has been woven into the fabric of their operations. The question for any business is not whether they should get on board with AI, but how to do so responsibly... A wiser approach is to foster a partnership between man and machine. That calls for open lines of communication, an investment in digital capabilities, and ongoing upskilling."
In a similar vein, Kartik Narayan, CEO of Apna.co, said, "Every major technology shift creates a gap between early adopters and everyone else. AI is no different. One of the most important foundational skills today is learning how to work effectively with AI. Prompt engineering may sound simple, but asking the right questions, providing the right context and iterating intelligently often determines the quality of the output. That alone can become a meaningful productivity differentiator. Beyond prompting, the bigger challenge is continuous upskilling. AI is evolving so rapidly that companies cannot rely only on hiring AI talent. They have to continuously upgrade the capabilities of their existing workforce."
