E-commerce Giant Lays Off 30,000 Employees, Sparking Employee Backlash

The phenomenon of mass layoffs continues to plague the technology industry in the United States. Alongside Meta Platforms, Amazon has emerged as one of the most active companies in reducing its workforce. The e-commerce giant is currently undergoing a massive transformation in artificial intelligence (AI) development, whilst simultaneously pursuing efficiency through staff reductions.

Over the past eight months, Amazon has carried out layoffs affecting 30,000 employees. Amazon CEO Andy Jassy emphasised efforts to simplify company operations and reduce management layers, according to reports. At the same time, Amazon is committed to investing billions of dollars to expand AI infrastructure, including the advanced data centres required to support growing AI initiatives—a move that has drawn increasing attention and criticism.

Employee Backlash

According to reports from CNBC International, Amazon’s aggressive push into the AI sector has drawn criticism from its own employees. During a Seattle City Council hearing this week, a group of Amazon engineers supported a proposal to regulate the construction of large-scale AI data centres. The employees’ motivation stems from a refusal to accept the company’s rapid AI expansion while thousands of workers are losing their jobs.

One employee, Patrick Schloesser, a software engineer at Amazon Web Services (AWS), pointed to the recent layoffs of approximately 30,000 staff over the last eight months. During the hearing, he noted that the layoffs reflect the urgency Amazon faces in expanding the computing power needed to support AI development and implementation.

This debate arises as Amazon and its competitors dramatically increase spending on AI infrastructure. It is estimated that Amazon, Microsoft, Alphabet, and Meta will collectively invest around US$700 billion this year in AI-related projects. Amazon itself is reported to be planning approximately US$200 billion in capital expenditure for 2026, much of which is directed towards expanding its AI capabilities.

Environmental Impact of Data Centres

Simultaneously, concerns regarding the environmental impact of data centres are rising across the United States. These facilities require vast amounts of electricity and water, triggering opposition from local communities and attracting the attention of policymakers. The US State Legislative National Conference stated that 14 states are now considering measures that could limit, delay, or prohibit the development of new data centres.