And so it begins: AI’s labour-market squeeze tightens

And so it begins: AI’s labour-market squeeze tightens

According to Amazon, the company will cut around 14,000 corporate roles (though earlier reports had suggested up to 30,000) as it re-organises amid what it describes as an “AI-driven era”. The cuts are reportedly geared towards reducing layers of bureaucracy and shifting resources into key strategic areas aligned with AI, automation, and new infrastructure.

The article points out that this move signals a broader trend: major employers are increasingly saying they can grow without expanding headcount — because AI and automation are enabling greater output per worker. In short, the default assumption for hiring is changing: instead of hiring first and evaluating later, companies may now only hire when absolutely necessary.

However, the link between these job cuts and AI is more symbolic than direct at this stage. The article cautions that while AI is part of the narrative, economic factors such as corporate cost-control and broader labour-market slowdowns are still major contributors. For workers and job-seekers, this means the transition is underway but the full reshaping of labour markets by AI may still be gradual rather than immediate.

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