Newcastle AI expert claims tech dependency will hugely impact job market as Amazon set to cut 14,000 roles
Amazon is set to cut as many as 14,000 corporate jobs as experts warn AI is a “time bomb waiting to explode” in the jobs market.
Impacted people and teams will hear from leadership on Tuesday, it was announced.
It's not clear what the impact on the 75,000-strong UK workforce is yet.
The growth of artificial intelligence (AI) has been blamed for the cuts.
In a message sent to staff, Amazon's senior vice president of people experience and technology, Beth Galetti, said: "Some may ask why we're reducing roles when the company is performing well.
“What we need to remember is that the world is changing quickly. 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.”
Tech companies have announced almost 130,000 job cuts so far this year, according to layoffs.fyi.
AI experts said AI is a “time bomb waiting to explode” in the jobs market.
Colette Mason, Author & AI Solution Architect at London-based Clever Clogs AI, said: "Amazon’s decision to cut 14,000 corporate jobs in its AI drive marks a shift not just in what work gets done, but in who gets to do it. When a company cites ‘high-tech innovation’ as justification for layoffs while still posting strong profits, the story shifts from the future of work to the replacement of work.
“For the UK, it is a warning shot: policy and education systems must move faster to protect white-collar workers now in AI’s firing line. ‘Act first, apologise later’ might be a Silicon Valley mantra, but in the UK marketplace it is an AI time bomb waiting to explode among disillusioned customers and beleaguered remaining staff.”
Mitali Deypurkaystha, AI Strategist at Newcastle upon Tyne-based Impact Icon AI, added: “We didn’t pass peak employment because AI failed but because it worked”.
She added: "Business leaders adopted AI for efficiency gains. Few asked what would happen if it succeeded. Most people make a Plan B for failure, not success. Yet, the biggest failures often follow the biggest wins.
“Efficiency inevitably means fewer human hours, so the first ripple is a hiring freeze, the next, job losses.”
Deypurkaystha continued: "The real crisis isn’t AI, it’s short-sighted leadership from both business owners and AI consultants. Responsible AI adoption means planning for success, and not just failure: helping leaders discover new, profitable processes to redeploy saved time and energy.
“In the short term, AI efficiency wins. In the long term, it risks hollowing out the very talent pipeline that sustains your organisation. No one needs to lose their job to AI, but they will if leaders and consultants fixate on efficiency.
“As a leader, ask yourself: are your AI efficiencies helping you reimagine human potential or replace it?”