Amazon targets middle managers in mass layoffs, memo suggests more cuts coming as AI thins Big Tech

Group 1 - Amazon is eliminating 14,000 corporate jobs, approximately 4% of its workforce, as part of a multi-year efficiency drive focused on reducing middle management layers [2][3] - Layoffs will affect various teams, including video games, grocery, HR, communications, ads, and devices, with expectations of further cuts through 2026 [2][3] - If total layoffs reach 30,000, it will mark the largest corporate layoff in Amazon's history, as the company reallocates resources towards data centers and AI infrastructure [3][5] Group 2 - The trend of job cuts is part of a broader industry shift among major tech companies, with significant layoffs reported by Meta, Google, and Microsoft as they invest heavily in AI [4][5] - Amazon has already cut over 27,000 jobs since 2022 and plans to spend more than $120 billion on capital expenditures this year to compete in the cloud sector [5] - Internal documents indicate Amazon aims to automate 75% of its operations by 2033, potentially avoiding the need for 600,000 new warehouse hires [5][6] Group 3 - The current environment suggests that while AI investments are boosting stock prices, they are simultaneously leading to reduced employment levels [6] - Upcoming earnings reports from Amazon and Google are anticipated to reflect increased spending commitments in the AI and cloud sectors, with pressure on consensus estimates for hyperscaler capital expenditures [7] - A recent commercial agreement between Microsoft and OpenAI guarantees $250 billion worth of compute from Microsoft Azure, opening opportunities for Amazon Web Services to compete for OpenAI's business [8]