Amazon, Uber Expand Layoffs as AI Redefines Tech Workforce

Amazon and Uber have announced fresh workforce reductions as both companies deepen their investments in artificial intelligence, reflecting a broader shift across the technology industry. The latest layoffs come as major firms increasingly restructure their operations to prioritise AI development and automation while seeking greater efficiency. The announcements highlight how artificial intelligence is reshaping workforce strategies across the sector.

Amazon confirmed that it is cutting additional jobs within its Artificial General Intelligence (AGI) division, although it did not disclose the number of employees affected. The AGI organisation is responsible for developing the company's next-generation AI systems and products. According to the company, the layoffs are part of a strategic effort to focus resources on projects that provide the greatest value to customers. The move follows an earlier round of restructuring that saw Amazon eliminate around 16,000 corporate roles in recent months.

The restructuring also comes after leadership changes within Amazon's AI division. Earlier this year, the company reorganised its AGI operations under Senior Vice President Peter DeSantis following the departure of key executives who previously led the unit. Despite the latest job cuts, Amazon has reiterated that artificial intelligence remains one of its most important long-term investment priorities and will continue to play a central role in the company's future growth strategy.

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Uber has also announced plans to reduce approximately 10 per cent of its customer service workforce as it expands the use of artificial intelligence across its operations. The ride-hailing company said AI will increasingly handle customer interactions and routine support functions, enabling it to streamline processes and improve operational efficiency. The decision reflects the growing adoption of generative AI to automate repetitive tasks that were traditionally managed by customer support teams.

The latest announcements underscore a wider trend across the global technology industry, where companies are investing billions of dollars in AI infrastructure while simultaneously restructuring their workforces. Industry analysts note that businesses are moving beyond AI experimentation and are redesigning organisational structures around the technology. While this transition is expected to boost productivity and lower operating costs, it has also intensified concerns over the long-term impact of AI on white-collar employment, particularly in customer service, administrative and back-office roles.

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