On Friday, Deepwater Asset Management managing partner Gen Munster said executives find it difficult to discuss AI-driven job cuts.
Munster highlights C-suites’ reluctance on AI and job cuts
Take to XMunster said: “One truth about AI’s impact on the workforce is that it’s hard to talk about.”
He noted that earlier this week in Davos, Anthropic CEO Dario Amodei told the Wall Street Journal states that most people do not fully understand the scale of AI’s impact, and warns that unemployment could reach 10%.
Munster added Amazon.com, Inc. (NASDAQ:AMZN) has announced a second phase of corporate layoffs after an initial round last October, potentially affecting 30,000 employees, or roughly 9% of the company’s workforce.
Previously, the analyst noted that Amazon is CEO Andy Jassy stated that the cuts were “not even really AI-driven,” and instead instituted them 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 pressure toward smaller business teams.
He added that executives face a delicate challenge in openly discussing the role of AI, because recognizing its impact on jobs could undermine employee morale and cause fear among the remaining workforce.
Amazon plans second wave of corporate layoffs
Amazon is reportedly preparing to cut nearly 30,000 corporate positions following its first round of layoffs in October, which affected about 14,000 employees.
The latest cuts could reportedly begin as early as next week, mirroring the previous round in size.
The cuts mainly affect Amazon’s 350,000 employees, a small fraction of its 1.5 million employees worldwide, but highlight the company’s ongoing efforts to streamline operations and increase agility.
The number of dismissals at large companies is increasing
Earlier this month, investor and author of “Rich Dad Poor Dad” wrote Robert Kiyosaki The rise in corporate layoffs highlights that the long-held belief in job stability through formal education no longer holds true in today’s economy.
This was reported on Thursday Citigroup Inc. (NYSE:C) is planning a new round of employee layoffs, scheduled for March, after about 1,000 jobs were cut earlier this month.
Ericsson (NASDAQ:ERIC) announced plans to cut jobs in Sweden earlier this month.
Tesla Inc. (NASDAQ: TSLA) has reportedly cut staff at its 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 some jobs, but said workers with strong soft skills will continue to have plenty of opportunities in an AI-driven economy.
A report by Sen. was published in October. 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 shares score high on Value Benzinga’s Edge Stock Rankingswith favorable price developments in the short, medium and long term.
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