[fn Editorial] Amazon.com, Inc. Cuts 30,000 Jobs, Preparing for the AI-Driven Employment Crisis

Reports have emerged that Amazon.com, Inc. has begun a massive restructuring, cutting 30,000 jobs. This decision comes just four months after CEO Andy Jassy remarked in June that the introduction of artificial intelligence (AI) would significantly change the way work is done. Now, the company is reducing 10% of its headquarters staff.
The wave of layoffs among major U.S. big tech companies is already spreading. In May, Microsoft cut 6,000 jobs, and Google LLC also carried out voluntary resignations across all divisions, including marketing, research, and engineering. Other leading technology firms such as Oracle Corporation (3,000 jobs), Meta Platforms Inc. (600 jobs), and Salesforce (4,000 jobs) have also joined in workforce reductions. Notably, Accenture PLC announced that employees who have not received AI-related retraining will be prioritized for layoffs, highlighting the direct risk of dismissal for workers unable to adapt to change. Even companies once considered the 'best places to work' are now accelerating workforce reductions to cut costs and improve efficiency.
This trend is a change that was already anticipated. According to a January survey by the World Economic Forum (WEF), 41% of employers worldwide plan to reduce staff due to the trend of automation. While past technological advances primarily affected blue-collar, manual labor jobs, AI is now replacing white-collar office roles. The recent concentration of layoffs in office positions is not a coincidence but an inevitable structural shift brought about by technological advancement.
This global workforce restructuring sends a serious warning to Korean society. Even in the United States, where labor market flexibility is high, large-scale layoffs have a significant impact on the labor market and society as a whole. Daron Acemoglu, Nobel laureate in economics and professor at the Massachusetts Institute of Technology (MIT), has expressed concern that 'Amazon.com, Inc. is turning from a job creator into a job destroyer.' In Korea, where layoff requirements are stricter and labor market mobility is lower, the shock could be even greater.
Korean companies must also quickly reallocate personnel and redesign organizations to keep pace with technological change. While some companies have already implemented voluntary retirement or job transition programs, the response of individual firms alone is not enough to keep up with the speed of change. If Korea remains stuck with a rigid labor structure while the United States adjusts its industrial competitiveness through flexible restructuring, there is a high risk of falling behind in global competition.
The employment crisis in the AI era is fundamentally different from those of the past. The United Nations Conference on Trade and Development (UNCTAD) has projected that up to 40% of jobs worldwide could be affected by AI technology. However, AI not only replaces jobs but also has the potential to create new industries and roles. If this crisis is managed well, it could become an opportunity. Companies should enhance workers’ adaptability to new technologies through retraining, while the government needs to improve systems and provide reemployment programs to simultaneously increase both labor market flexibility and job security.