Amazon, Intel, and Other Global Leaders to Implement Significant Workforce Reductions Amid AI Expansion
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Synopsis
Global firms like Amazon, Morgan Stanley, and Goldman Sachs are planning significant layoffs in 2025, concentrating on cost reduction and operational efficiency in the AI era. These cuts arise from AI advancements and economic uncertainties, impacting thousands of jobs across various sectors.
Key Takeaways
- Amazon plans to cut 14,000 managerial roles.
- Morgan Stanley to reduce workforce by 2,000 employees.
- Goldman Sachs aims for 3-5 percent workforce reduction.
- Intel undergoing restructuring with possible layoffs.
- Workday to cut 8.5 percent of its workforce.
New Delhi, March 20 (NationPress) A number of prominent international firms, including Amazon, Morgan Stanley, and Goldman Sachs, are set to execute substantial job reductions in 2025 as they concentrate on cutting expenses and optimizing operations in the artificial intelligence (AI) landscape.
The emergence of AI combined with global economic uncertainties are pivotal factors driving these layoffs.
Amazon, known as one of the largest e-commerce platforms worldwide, is reportedly planning to cut around 14,000 managerial positions. This initiative aims to achieve savings of approximately $3 billion annually. CEO Andy Jassy intends to boost the ratio of individual contributors to managers by 15 percent by the first quarter of 2025.
This decision follows Amazon's recent transition to a five-day workweek, a strategy some employees perceive as a means to promote voluntary resignations.
Reports indicate that the investment banking powerhouse Morgan Stanley is anticipated to lay off about 2,000 employees later this month, marking a 3 percent reduction in its workforce.
These layoffs are likely to exclude financial advisers. The firm, which had more than 80,000 employees in 2024, is now aiming to restructure its operations.
Goldman Sachs is also bracing for cuts, with intentions to shrink its workforce by 3-5 percent following an annual performance evaluation, according to the report.
In addition, semiconductor giant Intel is expected to undergo substantial restructuring under its incoming CEO, Lip-Bu Tan.
The company, which faced a $19 billion loss in 2024, is contemplating layoffs as part of a comprehensive overhaul of its AI strategy.
Tan has already suggested there will be “difficult choices” ahead, indicating that middle management positions may be impacted.
Bank of America recently eliminated approximately 150 junior banker roles, though most affected employees have been offered positions outside of investment banking.
Moreover, Workday is reportedly preparing to cut 8.5 percent of its workforce, affecting nearly 1,700 employees.
Given the prevailing uncertainty surrounding global economic conditions, it is likely that more companies will follow this trend in the upcoming months.
