Amazon, Intel, other global giants to slash huge workforce amid AI boom
Several major global companies, including Amazon, Morgan Stanley and Goldman Sachs, are planning massive job cuts in 2025
- NEW DELHI — Several major global companies, including Amazon, Morgan Stanley
and Goldman Sachs, are planning massive job cuts in 2025 as they focus on reducing
costs and streamlining operations in the artificial intelligence (AI) era.
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- The rise of AI and global economic uncertainties are key
reasons behind these layoffs.
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- Amazon, one of the world's largest e-commerce companies,
is planning to eliminate approximately 14,000 managerial roles, according to
reports.
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- The company aims to save around $3 billion annually
through this move. CEO Andy Jassy has set a goal to increase the ratio of
individual contributors to managers by 15 per cent by the first quarter of
2025.
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- This decision follows Amazon's recent shift to a five-day
workweek, which some employees believe is a way to encourage voluntary
resignations.
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- According to reports, investment banking giant Morgan
Stanley is expected to lay off around 2,000 employees later in March -- 3 per
cent reduction in its workforce.
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- These cuts will likely exclude financial advisers. The
firm had over 80,000 employees in 2024 and is now looking to restructure its
operations.
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- Goldman Sachs is also preparing for job cuts, with plans
to reduce its workforce by 3-5 per cent following an annual performance review,
the report added.
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- According to reports, chipmaker major Intel is also
expected to undergo a major restructuring under its incoming CEO, Lip-Bu Tan.
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- The company, which suffered a $19 billion loss in 2024,
is considering layoffs as part of a broader AI strategy overhaul.
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- Tan has already hinted at “difficult choices” ahead,
signaling that middle management roles could be affected.
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- Bank of America recently eliminated around 150 junior
banker positions, though most affected employees have been offered roles
outside investment banking.
