Amazon cuts 16k jobs
(reuters.com)702 points by DGAP 4 days ago
702 points by DGAP 4 days ago
AI is genuinely good at hallucinating. So is middle management. Probably displacing some of those jobs.
Many of these announcements are bluffs as many users here have pointed out. But real LLM-driven layoffs do happen, and from what I have anecdotally seen, they follow a pattern: leadership assumes the new LLM service will make human workers redundant. They then make cuts before the evidence is in. What this means is that today, there are many LLM service deployments that replaced humans while their actual impact remains a mystery. Though it won't be a mystery to leadership forever.
One example client that shouldn't dox me: Odom Corporation, a beverage distributor. They purchased an LLM-driven purchasing solution and immediately laid off their entire purchasing team, save for a few members who exist on the periphery. A follow-up with them showed that the system was ordering summer beverages coming into the winter (among many other bad purchasing decisions) and causing a dramatic increase in unsold inventory. Since they believe that LLMs will exponentially improve, they're dismissing it as a one-off because this year's models "will be so much better". We attempted to advise differently, but stakeholders got extremely emotional at even small suggestions that there was a fundamental problem. Good luck to them.
I think the execs are either using it as an excuse to reduce opex to boost share prices or they're actually buying into this delusion that the productivity improvements are right around the corner. Though I don't really buy into that second option since any reasonably intelligent person would wait to see concrete evidence of said improvements before crippling your company based on some hope.
I also think some of the companies that operate in the AI space are using the layoffs as a form of marketing to prove the capabilities of their tech (while also using it as an excuse to cut costs).
Anyways, I work at one of the major players in the space and the amount of AI code slop I see on a daily basis is absurd. My prediction is that within two years most younger SWEs will only have a high-level understanding of their code. I already see it happening.
It's also great at writing programs that kind-of, sort-of mostly work, just like human programmers: https://xkcd.com/2030/
I think AI is the scapegoat for the massive overhiring that happened in 2021 and 2022. These corporations kept thinking that the nearly-interest-free loans were going to keep on going forever, and since no one really knows how to grow a business they spent the money the only way they know how: hiring more people. It didn't really matter if they were filling jobs that were "necessary", just as long as they were filled.
Now, this is extremely short-sighted and frankly it makes me question the intelligence of these BigCos' executives, because unless they're utterly incompetent at this whole "business" and "living on the planet earth" thing they should have realized that the economy fluctuates and this infinite free money wouldn't last.
Now that AI is around, these companies finally have a way to do these layoffs while not looking quite as idiotic.
I have noticed this while working in a startup, how efficiency gains impacted work in the last 3 months with better coding models coming in. If you have someone senior that is effective at using these tools and can own the outputs and be capable of correcting things that are sloppy, you are immensely more valuable than 2-3 more developers in the same area of work. It's actually faster to empower fewer people than try to have 3 fast guys where there would be coordination overhead, which would become a bottleneck and bring down a lot of the efficiency gains. A good full stack engineer who can work with these tools at speed with caution is more valuable similarly as it requires less coordination. 3 junior devs shipping 90% good code and 10% slop would make the senior who is reviewing everything the bottleneck.
To help us use your anecdote, could you tell us what product area is your startup is working in?
>Amazon axes 16,000 American jobs as it ... relocates to a larger campus in India
https://techcrunch.com/2025/12/10/amazon-to-invest-additiona...
I realize it’s easy to pattern-match this news to 'hiring in India vs. firing in US' given the current climate, but having worked at Amazon India for 4 years, I can tell you the cuts happen there too.
Amazon has a history of annual restructuring that hits every region. It isn't necessarily a direct relocation strategy so much as their standard operational churn. The 'efficiency' cuts are happening globally, India included.
Sure, but at some point in the past, "Amazon India" was not a thing. Nor was "Microsoft India" and so forth. Surely you can understand what it feels like to be an American tech worker in a super high cost of living area, looking at reduction in headcount and continual offshoring of jobs as time goes by. I live in Seattle area, work at one of these big companies, I work with people in India almost every day and have been to India three times on business. When parts of my department's work was allocated to a new team in India, of course I was nervous about that.
I get the fear, but look at it from the investor's perspective. The US market is tapped out, Amazon is already everywhere it can be.
Amazon isn't expanding in India out of love for the country or a desire to see it grow. They are doing it because Wall Street demands infinite growth every single year. Amazon India went from zero to a market leader in a decade not because of charity, but because that is where the new money is.
To keep the valuation climbing (which sustains everyone's RSUs), they have to capture these emerging markets. If they don't, the stock stagnates, and the compensation model for US tech workers falls apart.
True. This is Globalism at work. If these companies were not selling goods and services globally then they wouldn't have to deal with setting up offices, staff, pressure from local politicians to hire locals around the world.
Companies hiring more in cheap labor countries is quite obvious for long time. In case of Amazon I feel most of the stuff that was cutting edge 2 decades back is now low value work where cost is the only edge.
The parent comment is obviously cherry picking news and trying to push an agenda.
Uk investment: https://www.aboutamazon.co.uk/news/job-creation-and-investme...
Us investment: https://finance.yahoo.com/news/amazon-invest-50-billion-ai
And the original link about investment in India is also about fulfillment jobs and even worse, “investing in AI”, aka building data centers, which contribute essentially no jobs at all.
Amazon also employs 1.5 million people globally, 350k of which are in corporate. These 16k were corporate. Still sucks for everyone involved, I know a corporate sales guy who got laid off Microsoft and it disrupted his life pretty seriously. As Stalin says one's a tragedy, a millions a statistic.
Since the HN reaction to layoffs almost always is about blaming H1B, here’s a few more things the headline misses:
1. Cuts were global 2. Cuts in US also include H1B employees 3. 16000 roles are corporate roles, not just tech related, H1B program is not generally utilized for those roles 4. Expansion in India is not just tech. Amazon is a big retailer in India. Understandably if you’re seeing revenue growth in India, you will grow corporate presence in India. If Walmart becomes a massive retailer in EU, it will hire EU nationals in EU. That’s not shipping jobs to EU.
Many Software Engineers gone. At L6 and L7 level.
Details here: https://www.reddit.com/r/amazonemployees/
It not pattern matching, it’s literally two things happening at the same time… in a business… that strictly budgets everything…
It’s not a pattern it’s a plan.
Amazon is a big retailer in India, believe it or not, if you are a big online retailer in a country, you will have a big corporate presence in that country.
> if you are a big online retailer in a country, you will have a big corporate presence in that country.
Is that true? Could you think of some large retailers in other countries, like the United States, without a big corporate presence? What do you mean when you say "big"? 1,000 employees? 10,000? 100?
As is the case with many mass layoffs. AI just makes a good reason to claim. It makes you look progressive to investors and it doesn't make you look bad to the public. If AI didn't exist it would be some other excuse to spin this as a positive for the company and not bad for the affected workers.
People may have forgotten what happened back in early 2000s. Outsourcing was all the rage, and people in the US were really concerned. And then it came the explosive growth of internet, of mobile, of cloud, of social network, and etc. And then discussion died or at least dwindled enough that we stopped paying attention.
It looks to me that massive outsource means that companies turn to focus on incremental improvements, which won't require rapid communication in the same location. Besides, the tech has been growing amazingly for decades, other countries have caught up and therefore have growing number of talent. It's a matter of time for them to own more R&D.
Outsourcing in the 90's/2000's failed because you didn't want to deskill engineers and reduce their scope, you wanted Jeff Dean building pagerank and building Google.
Outsourcing happens when the economy forces companies to cut costs. When innovations return substantial growth, most companies don't think much about the costs. We have a rough economy, bad tariff policy, a weakening dollar, and immigration policy that's reducing the overall US population (and with it, spend in the economy). All those factors push companies to need to cut costs
Where are you seeing “American” jobs? Amazon workers in India were laid off too.
There are similar stories about Amazon investing in American cities too. Cherry picking a story that Amazon is renovating their office in India is ingenuine.
It's even less expensive! Problem solved. Mr. President, we have successfully axed all H1B positions, as you have wished.
I guess we just need the other shoe to drop: punish companies that are based in the US and outsource to India. It’ll happen in time if this trend continues
Just Walk Out was actually 1000 people in India. https://www.businessinsider.com/amazons-just-walk-out-actual...
This is a nicer way to say to say layoffs/outsourcing while being rewarded by the market for "adopting AI".
For who does not know, in tech Amazon has always been the biggest H1B shop.
https://www.forbes.com/sites/stuartanderson/2025/11/17/top-u...
I wonder how this is also related to the attacks on the H1B visa.
I'm not american, but it seems to me there are enough american job seekers in CS to justify not needing H1B.
I'm not sure anyway what is the relationship between the potential difficulty of hiring new folks, and firing current folks in USA to offshore roles, are relates.
> it seems to me there are enough american job seekers in CS to justify not needing H1B.
Anecdotal so hold on to your salt but in my social circle here in the US natural-born US citizens vs visa-holders self-select for types of jobs. For example, if my the starting pay is < $80k most of my natural-born American friends don't bother applying. Whereas, my visa-holding friends routinely go well below $50k when searching for jobs or "2 year internships". So, when a company posts a certain type of a job they have a certain demographic in mind already.
Not saying my US friends are uppity as much as visa holders are desperate.
you see the reason h1b is so popular with the c-suite in a lot of cases is that you get absolute loyalty to a company that holds all the power of your being allowed to stay in the us. you lose the h1b job and you have limited time to find a new valid employer to sponsor you or else you go back to your country. it's one of the reasons musk loves it for twitter.
The "problem" is that you have to compensate natives better / treatment.
Just look at the open roles for these companies, all India. They're not hiding it. Don't even need H1B.
There's not a surplus of American developers that can pass interview loops at top tech employers.
> there are enough american job seekers in CS
To be blunt: Not enough qualified ones. Look at the names of all the top AI papers of the past 3 years, not too many are American.
When you get bullied in American public schools for being a "nerd" and liking science and math, your country doesn't exactly produce a lot of state-of-the-art STEM professionals. You get a small handful of exceptional people who overcame the adversity but that's it.
The top 0.1% are perhaps mostly American-educated. The top 10% on the other hand are mostly not American. And you need the top 10% to code for the top 0.1%.
> there are enough american job seekers in CS to justify not needing H1B.
As an interviewer in a big tech company, it seems all candidates I interview are foreigners who often graduated in the US. Either the company discriminates (which I really doubt it does), or there aren't enough qualified Americans for some jobs. And even if there are, the largest pool of candidates, the better.
Nothing to do with it, just following a trend before the attacks: https://finance.yahoo.com/news/microsoft-nadella-pledges-3-b...
There haven't been any meaningful attacks on H1b visa. When running for office, Trump said very clearly that H1b was good for his companies (saving money), but bad for the American people.
Today, he's claiming that we need H1b because we don't know how to build computer chips (~75% come from India with zero advanced production and another ~12% come from China which is also far behind).
His "massive" $100k increase over 7 years is just a bit over $14k/yr. I had a former H1b programmer (now legal immigrant) I worked with tell me about his experience. Getting paid less than $40k to live in Austin, TX and living with a half-dozen other H1b indenured servants/slaves in a tiny shared apartment just so they could survive the 7 years and get on the path to citizenship.
Do you think those companies would bat an eye about increasing their expenses from $40k to $54k per year when median dev salary back then (2015) was around $92k/yr? After a decade of inflation, that $14k is even less important.
Over-immigration with H2b and illegal immigration suppresses blue-collar wages (Bernie Sanders famously called open borders a "Koch brothers proposal"). H1b and outsourcing to India centers suppresses white-collar wages.
Do you see prices dropping as they cut worker salaries and outsource? Can you even buy things when you don't have a job?
Trump (and the rest of the uniparty) has enabled corporate theft on a scale that's never been seen before and the chickens are going to be coming home to roost really soon.
Once again the mask of "AI" is really just human labor underneath.
I've personally seen founders raise millions of dollars because of "AI" that is really just manual labor. I know, I wrote the code that enabled the manual laborers. This was like 10 years ago; the lie is even easier to tell now. And that is so so important in an economy where gaining favor from those who already have money is far better than just selling a good or service.
I've sat on many meetings and gotten to trial many "AI products", and a good portion of them do have actual LLMs attempting to perform work. Though most of them are brittle wrappers of the big AI labs, with an aspirational markup.
The AI of today can do more, yes. But the path to funding and success doesn't require actual AI use, just the appearance of AI. No need to actually sell a good or service in a profitable manner. Just convince those with money that you have some secret-scaling-AI-sauce, and you'll be a success without ever having to sell an actual product.
The founder I mentioned earlier sold the company and thanked us all for the amazing journey, and then started his next thing in his multi-million dollar house. All built on a lie that made the company look good.
This is and always has been an eventuality. It's like fighting inertia or gravity to think otherwise. When the pay disparity is so massive, what is the incentive to hire US talent?
I say that as an American that is concerned with our local economies and employment but that's not looking through rose colored glasses.
If a company is looking to offshore a function purely on the basis of cost differential, that’s a sure sign the company believes the function has been commoditized and is immune from competitive selection.
That’s a specific slice of the workforce, not all of it.
How small can that slice be though?
It’s only really needed on true blue ocean innovation and where the company has to find the skills where they exist. If that’s the US, then sure they’ll continue some small slice of employment here for those projects. But as you said, a majority of software is a commodity now (has been for a long time, really). I don't feel like many companies are doing much innovative anymore and I feel people severely underestimate the talent present in other countries. So, even if you pointed to 10 innovation projects at Amazon then I could counter by saying even 85% of those teams could be in India.
AWS accounts for more than 50% of Amazon net profit though
Maybe the support scammers can get some real jobs as prompt engineers? Hey I'm trying to find some upside around all this.
> Hey I'm trying to find some upside around all this.
More AWS outages means more breaks from work?
Sorry, VP says we're migrating. What? Will they see it through? Of course not!
AI is just the disguise. It's the economy, just like it is in every recession.