On Friday, Deepwater Asset Management’s managing partner Gene Munster said that executives find it difficult to discuss AI-driven job reductions.
Munster Highlights C-Suite Reluctance On AI And Job Losses
Taking to X, Munster said, “One truth about how AI is impacting the workforce is that it’s hard to talk about.”
He noted that earlier this week at Davos, Anthropic CEO Dario Amodei told the Wall Street Journal that most people don’t fully grasp the scale of AI’s impact, warning that unemployment could reach 10%.
Munster added that Amazon.com, Inc. (NASDAQ:AMZN) has announced a second phase of corporate layoffs, potentially affecting 30,000 employees, or roughly 9% of its corporate workforce, following an initial round last October.
Earlier, the analyst noted that Amazon CEO Andy Jassy stated that the reductions were “not even really AI driven,” framing them instead as part of a cultural shift aimed at creating a leaner, more agile organization.
However, Munster said the statement highlights a broader reality: AI is quietly driving the push toward smaller corporate teams.
He added that executives face a delicate challenge in discussing AI’s role openly, as acknowledging its impact on jobs could undermine employee morale and create anxiety among remaining staff.
Amazon Plans Second Wave of Corporate Layoffs
Amazon is reportedly preparing to cut nearly 30,000 corporate positions, following the first round of layoffs in October, which affected roughly 14,000 employees.
The latest reductions could reportedly start as soon as next week, mirroring the previous round in scale.
The cuts primarily impact Amazon’s 350,000 corporate employees, a small portion of its 1.5 million global workforce, but they highlight the company’s ongoing effort to streamline operations and boost agility.
Corporate Layoffs Surge Across Major Firms
Earlier this month, investor and “Rich Dad Poor Dad” author Robert Kiyosaki said the surge in corporate layoffs highlights that the long-held belief in job stability through formal education no longer holds in today’s economy.
On Thursday, it was reported that Citigroup Inc. (NYSE:C) is planning a new round of employee layoffs slated for March, following about 1,000 positions that were cut earlier this month.
Ericsson (NASDAQ:ERIC) earlier this month revealed its plans to cut jobs in Sweden.
Tesla Inc. (NASDAQ:TSLA) has reportedly reduced its workforce at the Berlin Gigafactory, cutting more than 1,700 jobs, despite previously denying such reports.
Previously, JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon acknowledged that artificial intelligence will replace certain jobs but said that employees with strong soft skills will continue to have plenty of opportunities in an AI-driven economy.
In October, a report from Sen. Bernie Sanders (I-Vt.) and the minority staff of the Senate Health, Education, Labor and Pensions Committee warned that AI and automation could displace nearly 100 million American jobs over the next decade.
Amazon stock scores high on Value in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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