As AI menaces jobs, Amazon announces thousands of cuts



Amazon responded to allegations of thousands of upcoming job cuts following a scathing report that said the company planned to replace more than 600,000 U.S. jobs with robots.

The New York Times reported last week that it had reviewed internal documents that allegedly revealed Amazon's intentions to avoid making new hires by increasing automation. Amazon told Blaze News in response that "leaked documents often paint an incomplete and misleading picture" of company plans and that the details did not reflect its overall hiring strategy.

Less than a week later, Amazon is announcing thousands of job cuts.

'This generation of AI is the most transformative technology we've seen since the Internet.'

Reuters reported on Monday that the company is planning to cut as many as 30,000 corporate jobs as it attempts to "pare expenses" for overhiring that happened during the peak demand period during COVID-19. Reuters said that three sources provided the outlet with the inside information.

In comments to Blaze News, Amazon simply stated that it is reducing its corporate workforce, which totals approximately 14,000 roles being cut.

While there was no mention of the allegedly 16,000 remaining cuts, Amazon said the latest jobs reduction had no relation to the New York Times piece. However, a spokesman carefully articulated that Amazon sees that story as revolving around "potential future hiring of hourly employees within operations facilities."

"It's not related to today's announcement," the spokesman added, without making any mention of automated replacements.

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Photo by Paul Hennessy/NurPhoto via Getty Images

In a press release, Amazon said it is offering "most employees" 90 days to look for a new role within the company and will "prioritize internal candidates to help as many people as possible find new roles within Amazon."

However, despite representatives shying away from addressing a future entrenched in automation, the company openly discussed its need to "organize more leanly" ahead of upcoming changes that are a result of AI integration.

"This generation of AI is the most transformative technology we've seen since the Internet, and it's enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones)," Amazon's Beth Galetti wrote. "We're convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business."

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Photo by Justin Sullivan/Getty Images

Amazon said it will continue to hire in "key strategic areas" in 2026 while also "finding additional places we can remove layers, increase ownership, and realize efficiency gains."

The company recently boasted about its annual holiday-hiring increase, stating its plans to fill approximately 250,000 positions. However, in its communications, Amazon has avoided directly revealing its plans relating to automation. It did, however, deny recent claims that it has directed employees to avoid using terms such as "automation" and "AI" in reference to robotics.

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Corporate America is eating its seed corn — and our future



“Don’t eat your seed corn.” Every farmer gets it. Every American with common sense gets it. The only people who don’t? The people who run corporate America.

A farmer keeps part of this year’s crop for planting next year. He could sell it now and pocket more cash — but then there’s nothing to plant, nothing to harvest, nothing to live on later. That’s obvious to anyone who works the land.

Capitalism creates wealth. But when wealth is extracted at the expense of the product, the people, and the future — that’s not capitalism. That’s predatory ransacking.

But in today’s boardrooms, the rule is reversed. Short-term profit is all that matters. Strip the future bare, cash out, and leave the mess for someone else to clean up.

The rewards for this corporate vandalism are massive: fat bonuses, stock windfalls, golden parachutes. The damage — lost jobs, gutted industries, shoddy products — is someone else’s problem.

And the fastest way to pull it off? Slash costs to the bone. Ship jobs overseas. Push out the people who know the business best. Wreck customer service. Kill innovation. Downgrade quality until the product barely passes as the same thing you used to make.

Private equity and corporate strategists have a new trick for squeezing customers dry: “revenue mining.” That means cross-selling, upselling, jacking up prices, and hiding the real costs in creative contracts.

At first, it works. Existing customers tend to stick around — inertia keeps them from bolting right away. But each gimmick drives off a slice of loyal business. Combine that with lower service quality and cheaper products, and the exodus accelerates. Before long, the company is stuck with an overpriced product, lousy service, and no easy way to attract new customers.

I’ve watched this play out in my own life. My exterminator. My alarm company. My HVAC service. All wrecked by the same formula. The local phone number? Redirected to a call center overseas — if I can navigate the phone tree. The people I used to know? Gone. The contract? Suddenly much more expensive.

The service I get for my trouble? Less than before. And when the tech finally arrives, all he says is, “Things are much different now.” They might wring one more payment out of me, but I’m already shopping for a local outfit that treats me like a customer instead of prey.

In short, they ate their seed corn. They got one fat harvest out of me, then pushed me straight into the arms of their competition — for good.

At least my dentist is still a one-man shop who owns his own business. But even dentistry is under siege. Private equity-backed dental chains are giving dentistry a bad name, pushing unnecessary procedures just to meet revenue targets.

A USA Today investigation titled “Dentists under pressure to drill ‘healthy teeth’ for profit” uncovered one such example:

Dental Express was part of North American Dental Group, a chain backed by private-equity investors. At least a year earlier, the company had told dentists like Griesmer to meet aggressive revenue targets or risk being kicked out of the chain. Those targets ratcheted up pressure to find problems that might not even exist.

In my professional career, I have seen too many examples of the same pattern: private equity buying and destroying great businesses that had loyal customer bases. To be fair, I have also seen examples of private equity groups buying a business, embracing its product, and continuing to provide good service. I wish it weren’t the exception, though.

More often, private equity groups treat the acquisition as a mine: extract the capital through dividends and existing customers while accruing significant debt. In fact, the funds used to purchase the business are often borrowed and never even repaid.

Dig until empty, leave a crater, and move on.

An X user put it perfectly:

Some private equity is genuinely investing in the business to grow a solid business. This is good, full stop.

Some private equity buys up dying businesses, breaks them up, sells off the valuable bits and sometimes lets the worthless bits go through bankruptcy, taking advantage of bankruptcy laws to profit. This is good, actually, as it recycles the resources of dying businesses into good businesses.

The third type of private equity buys good businesses that are doing OK or even doing well. Then they sell off all the assets, load the company up on as much debt as they can, pay themselves giant dividends, and then take advantage of the same bankruptcy laws to discharge all the debt so they never have to pay it back. This is really bad.

This isn’t just happening to small companies. It’s hitting America’s industrial backbone.

I’ve written before about how Carlos Tavares, the former CEO of Stellantis (corporate parent of Chrysler, Dodge, and Jeep), awarded himself a $39 million compensation package for making short-term decisions that briefly maximized profit before revenue and sales collapsed, leaving dealers with overpriced, outdated inventory. He made off with the profits, then left behind a hollow pipeline for the dealers truly committed to Stellantis.

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Greenseas via iStock/Getty Images

I also covered Boeing’s disastrous $43 billion stock buyback binge. The short-term boost to its share price came at the expense of critical investment in its products — and has cost the aerospace giant $35 billion since 2019. To plug the hole, Boeing had to raise another $15 billion in capital and push back the already overdue launch of the 777, citing “negligent engineering.”

That phrase used to be unthinkable in the aerospace industry. Boeing made it possible by gutting its engineering and technical staff to feed Wall Street.

The consequences keep coming. This month, United Airlines grounded much of its fleet after a failure in its proprietary “Unimatic” flight system. The airline claims it doesn’t know what caused the failure.

But I have a strong suspicion.

In recent years, United has aggressively outsourced its technical operations to contractors using foreign labor — often H-1B visa workers — at lower cost. One subcontractor, Vista Applied Solutions Group, boasts that it helps clients “increase productivity” while achieving “considerable cost savings.”

That’s great — until the system fails and planes can’t fly. United may have saved on salaries. The short-term reduction in salary expense has eaten United’s seed corn, leaving the company with a technology system that can’t keep its planes in the air.

It is imperative for those of us who defend capitalism to also repudiate those engaged in practices that give it a bad name. Capitalism creates wealth. But when wealth is extracted at the expense of the product, the people, and the future — that’s not capitalism. That’s predatory ransacking.

And it deserves our scorn.

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