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Amazon CEO Andy Jassy Signals Workforce Reduction as AI Automates Routine Jobs

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Amazon is preparing to reduce its total corporate workforce over the next few years due to the rapid adoption of generative AI and automation, CEO Andy Jassy said in an internal note on Tuesday. The company expects that AI-driven efficiencies will reshape job roles, decreasing demand for some routine tasks while increasing demand for others.

Amazon employed more than 1.5 million full-time and part-time workers by the end of 2024, alongside temporary and contract staff. Jassy highlighted the company’s ongoing use of AI to optimize inventory management, improve forecasting, upgrade customer service chatbots, and enhance product detail pages.

“As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said.

Industry analysts note that this trend reflects a broader shift across the tech sector. Gil Luria of D.A. Davidson commented that AI’s rapid productivity gains are leading to slower hiring, particularly in software development roles.

Other major tech firms like Microsoft and Google have also emphasized AI’s role in boosting productivity while concurrently reducing headcount through layoffs.

While AI is expected to reshape the workforce rather than cause mass unemployment, many roles will evolve significantly in the coming years as automation accelerates.

Meta Signs Deal for Advanced Geothermal Power in New Mexico to Support AI Expansion

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Meta has signed an agreement with XGS Energy to develop 150 megawatts of advanced geothermal electricity in New Mexico. The clean energy will power Meta’s expanding artificial intelligence data centers, marking a step forward in the tech giant’s efforts to source sustainable energy for its operations.

This deal highlights a growing trend among major technology companies to secure large-scale, low-carbon power supplies to meet soaring electricity demands driven by AI development. Advanced geothermal energy, unlike conventional geothermal, generates power without relying on natural water sources and produces no climate-warming emissions.

While 150 megawatts is a small portion of the gigawatts of power that Big Tech firms seek for AI data centers, it represents about 4% of total U.S. geothermal production capacity. New Mexico has significant untapped geothermal potential, estimated at around 160,000 megawatts.

The Meta-XGS project is planned to be phased in and operational by the end of this decade. The electricity generated will feed into the local grid and support Meta’s regional operations.

Urvi Parekh, Meta’s Global Head of Energy, said, “With next-generation geothermal technologies like XGS ready for scale, geothermal can be a major player in supporting the advancement of technologies like AI as well as domestic data center development. We’re excited to partner with XGS to unlock a new category of energy supply for our operations in New Mexico.”

Taiwan’s Wistron Targets Up to $923 Million in Luxembourg Share Sale

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Taiwanese electronics manufacturer Wistron Corp is aiming to raise up to $923 million through the sale of global depository shares (GDS), according to a term sheet reviewed by Reuters. The GDS will be listed in Luxembourg, and trading is scheduled to begin on June 16.

Wistron, a key supplier to Nvidia, plans to issue up to 250 million depository shares priced between $36.20 and $36.93 each. This pricing represents a 4% to 6% discount compared to Wistron’s closing stock price of NT$115 ($3.85) on Thursday.

The company has not issued a public statement regarding the offering as of now. According to the term sheet, proceeds from the share sale will primarily be used to purchase raw materials denominated in foreign currencies—reflecting Wistron’s strategy to better manage currency risks tied to its international supply chain operations.

Expanding U.S. Presence for AI and High-Performance Computing

Wistron’s fundraising comes as it expands its operations to meet surging demand in the high-performance computing and AI sectors. Last month, the company announced that its new U.S. manufacturing facilities—being prepared for customer Nvidia—are expected to be operational next year. The facilities will focus on producing AI-related hardware and high-performance computing products.

The move aligns with Nvidia’s rapid growth in AI-driven technologies, as well as a broader industry shift toward more diversified and localized manufacturing capabilities, particularly in response to global supply chain disruptions.

Additionally, Wistron disclosed that it is actively engaged in discussions with other potential customers to expand its client base in these rapidly growing technology sectors.

Strategic Capital Raising Amid Currency Volatility

By raising funds through the GDS offering in Luxembourg, Wistron is diversifying its capital sources while also mitigating currency fluctuation risks. The global nature of its customer and supplier relationships makes access to foreign currency-denominated funds increasingly critical.

The GDS structure also allows Wistron to tap into a broader pool of international investors, while enhancing its financial flexibility to support ongoing expansion efforts in both manufacturing capacity and technological innovation.