Part 7/16:
Most analysts initially attributed these layoffs to cost-cutting during economic downturns, but Amazon's financials tell a different story. The company's revenue continues to grow—AWS is expanding, retail remains robust, and profits are high. The cuts are driven by a different, more profound calculus: AI can now perform a significant portion of corporate functions more efficiently, accurately, and at a fraction of human cost.
This shift is rooted in the exponential improvement of AI capabilities. In 2023, AI tools were experimental; by 2024, they supplemented human work; and in 2025, entire job categories are being replaced with autonomous systems. Amazon's leadership recognized this inflection point early and decided to act decisively.