Amazon cuts 30,000 jobs while pouring billions into AI, employees are now pushing back
Amazon engineers used a Seattle City Council hearing to back regulation of large AI data centres. Their intervention sharpened scrutiny of Amazon's job cuts alongside its aggressive investment in AI infrastructure.
The AI boom is forcing some of the world's biggest technology companies to make difficult choices. At Amazon, that shift is becoming increasingly visible and increasingly controversial. Over the past eight months, Amazon has laid off around 30,000 corporate employees as CEO Andy Jassy works to streamline the company and reduce bureaucracy. At the same time, the tech giant is preparing to spend massive amounts of money on AI infrastructure, including new data centres that power artificial intelligence systems.
Employees question the timing
For some Amazon employees, the timing is hard to ignore. This week, a group of Amazon engineers appeared at Seattle City Council hearings to support efforts aimed at regulating the construction of large AI data centres in the region. Their message was simple: while workers are losing jobs, the company is racing to build more computing capacity for AI.
Patrick Schloesser, a software engineer at Amazon Web Services, told the hearing that the company's recent layoffs signal how urgently Big Tech wants to expand its AI capabilities.
"The leaders at my company have laid off 30,000 corporate employees in the last eight months," Schloesser said. "What that tells me is that Big Tech is desperate to build as much compute capacity as it can, as fast as it can."
Amazon, in a statement to CNBC, said it respects employees' right to express their opinions.
Billions flowing into AI
The debate comes as the biggest technology companies are spending unprecedented amounts of money on AI.
Amazon, Microsoft, Google-parent Alphabet, and Meta are expected to collectively invest roughly $700 billion this year, largely on AI infrastructure. Amazon alone plans to spend $200 billion on capital expenditures in 2026.
Growing concerns over data centres
But the rapid expansion of AI data centres is also triggering concerns outside the tech industry.
Data centres consume enormous amounts of electricity and water, leading to growing opposition from residents in several parts of the United States. Communities are increasingly seeking limits on the construction of new facilities, arguing that the environmental costs need closer scrutiny.
The pushback is now reaching lawmakers as well. According to the US National Conference of State Legislatures, 14 states are considering legislation that would pause or ban new data centres.