Amazon, the global e-commerce and technology giant, is set to reduce its workforce by 30,000 office jobs as part of a cost-cutting strategy while ramping up investments in artificial intelligence (AI). The layoffs, which represent nearly 10% of Amazon’s approximately 350,000 office employees, are expected to commence this week, according to multiple U.S. media reports. Notably, the cuts will not impact the company’s distribution and warehouse workforce, which constitutes the majority of its 1.5 million employees. Amazon has not officially commented on the reports, which were initially published by outlets such as The Wall Street Journal and The New York Times, citing anonymous sources. Despite the news, Amazon’s shares saw a slight increase at the close of the trading day. CEO Andy Jassy has consistently emphasized the transformative potential of AI in enhancing workplace efficiency, from customer interactions to operational streamlining. During Amazon’s recent quarterly earnings call, Jassy highlighted the growing impact of AI on customer experiences. The company is under pressure to demonstrate the value of its substantial AI investments, particularly within its Amazon Web Services (AWS) cloud computing division. Analysts, including Emarketer’s Sky Canaves, have noted that AWS must show both revenue growth and improved operating margins to justify its AI expenditures. Additionally, Amazon faces scrutiny following a recent AWS outage that disrupted numerous internet services globally, including streaming platforms, messaging apps, and banking services. The outage, attributed to an issue with the Domain Name System (DNS), underscored the widespread reliance on AWS’s infrastructure. AWS remains the leader in the cloud computing market, closely followed by Microsoft Azure and Google Cloud.