Nation’s largest employers put workers on notice over artificial intelligence shift

Amazon and Walmart are trimming or holding headcount steady while promoting artificial intelligence as a path to greater efficiency. Executives and economists say the technology is reshaping roles even as clear productivity gains remain uneven.

Amazon and Walmart, two of the largest private employers in the United States, are publicly reframing workforce moves as part of a shift toward greater use of artificial intelligence. Amazon announced cuts to 14,000 corporate roles this week and said it will hire hundreds of thousands of seasonal workers for the holiday period, while noting efficiency gains from automation and robots deployed across its operations. Walmart has signaled it will keep its roughly 2.1 million employees steady for the next three years as it uses artificial intelligence to evolve roles, offering training and pathways to new positions even as some roles are reduced.

Executives and analysts describe a broader change in corporate messaging, with hiring freezes and job cuts increasingly presented as evidence of strategic agility rather than distress. Amazon CEO Andy Jassy has tied potential workforce reductions to efficiency gains from artificial intelligence, while later characterizing this week’s corporate layoffs as driven by organizational structure rather than purely financial or technological factors. Other major employers are making similar moves: Google’s YouTube offered voluntary buyouts as it restructures around artificial intelligence, banks such as JPMorgan and Goldman Sachs are slowing hiring, and Nestlé has announced forthcoming job cuts tied to automation.

Economists and researchers caution that the role of artificial intelligence in productivity and employment remains unsettled. Stanford University’s Digital Economy Lab has identified early signs that some entry-level positions exposed to automation are becoming scarcer. Analysts from Gartner and independent economists quoted in the article say most recent layoffs were not primarily caused by artificial intelligence but reflect a mixture of economic pressures, investor expectations and selective investment in data centers and infrastructure that power the technology. Executives continue to talk up artificial intelligence as a tool for growth and cost control even as firms experiment with training, internal role shifts and new automation tools.

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