N. Lee Plumb, recently laid off from Amazon, is certain his departure wasn’t due to resistance to the company’s AI initiatives. As head of his team’s “AI enablement, ” Plumb was one of Amazon’s top users of its AI coding tool, Kiro, helping solve significant challenges in the company’s compensation system. Despite Amazon’s announcement of 16, 000 corporate layoffs last week, many suspected CEO Andy Jassy’s rationale that AI efficiencies enabled workforce reductions. However, as seen with companies like Expedia, Pinterest, and Dow, it’s often unclear whether AI truly drives layoffs or serves as a message to investors. Plumb, who has worked at Amazon for eight years and is campaigning for Congress in Texas on a platform opposing tech companies’ reliance on foreign work visas, is skeptical of AI as a direct cause for job cuts. “AI has to drive a return on investment, ” he said. “You could have been bloated in the first place, reduce headcount, attribute it to AI, and create a value story. ” Economist Karan Girotra of Cornell notes that while AI boosts individual productivity by saving time, organizational structures rarely adapt quickly enough for substantial workforce reductions. He argues Amazon is likely still adjusting post-COVID hiring surges rather than using AI to justify cuts. Goldman Sachs research underscores AI’s limited overall labor market impact so far, with some effects starting in marketing, graphic design, customer service, and tech—fields aligned with generative AI capabilities like writing emails, producing images, and coding. Its AI adoption tracker noted few layoffs attributed to AI since December, predating the recent Amazon, Dow, and Pinterest announcements. Pinterest explicitly linked its decision to reduce up to 15% of staff to an “AI-forward strategy, ” reallocating roles toward AI proficiency.

Expedia’s layoffs, including machine-learning scientists, and Dow’s 4, 500 cuts, tied to AI and automation for productivity gains, also reflect this trend. Amazon’s 16, 000 corporate job cuts coincided with plans to close almost all Amazon Go and Amazon Fresh stores, costing about 5, 000 retail jobs, adding to over 30, 000 jobs cut since October amid AI-driven organizational shifts. Tech firms like Amazon and Meta are heavily investing in AI tools to drive efficiency. Meta CEO Mark Zuckerberg predicted AI will dramatically reshape work by 2026, highlighting initiatives to empower individual contributors and reduce team sizes. Meta’s layoffs this year have targeted virtual reality and metaverse units, with resources shifting toward AI development, which demands substantial investment in chips, data centers, and talent. Last June, Jassy encouraged Amazon employees to engage deeply with AI tools, attend training, and find innovative ways to enhance customer service with leaner teams. Plumb embraced this, becoming a prolific Kiro user. Now, he is focusing on his political campaign challenging U. S. Rep. Dan Crenshaw in Texas. Girotra suggests that while AI might eventually lead to cuts in middle management due to productivity gains, most layoffs stem from simple cost-cutting demands rather than AI-driven strategies. Not all companies cite AI in layoffs: Home Depot recently cut 800 roles focused on agility and customer service needs, denying automation as a cause, and Peloton announced an 11% workforce reduction to cut operating expenses. Overall, while AI plays an increasingly prominent role in corporate strategy and workforce planning, its precise impact on layoffs remains ambiguous amid broader cost and efficiency pressures. — AP Retail Writer Anne D’Innocenzio contributed to this report.