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Rani Molla

Amazon says it will reduce its workforce by 14,000

Amazon said it plans to cut its corporate workforce by 14,000, or 4% of its total corporate employees.

“While this will include reducing in some areas and hiring in others, it will mean an overall reduction in our corporate workforce of approximately 14,000 roles,” Amazon Senior Vice President of People Experience and Technology Beth Galetti wrote in a blog post Tuesday.

Reuters reported yesterday that Amazon could ultimately cut up to 30,000 corporate positions. Bloomberg has said those roles will span jobs in logistics and payments, video games, and its cloud computing unit.

This news marks the company’s second major layoff in two years as it attempts to reverse a pandemic hiring spree and makes use of AI technology.

“This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before,” Galetti wrote. “We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”

Reuters reported yesterday that Amazon could ultimately cut up to 30,000 corporate positions. Bloomberg has said those roles will span jobs in logistics and payments, video games, and its cloud computing unit.

This news marks the company’s second major layoff in two years as it attempts to reverse a pandemic hiring spree and makes use of AI technology.

“This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before,” Galetti wrote. “We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”

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#10

Tesla just recalled its beleaguered Cybertruck for the 10th time since the vehicle was introduced two years ago. This time the company recalled about 6,000 of the “apocalypse-proof” vehicles due to what the National Highway Traffic Safety Administration says is an improperly installed “optional off-road light bar accessory” that could become disconnected from the windshield while driving, and could “create a road hazard for following motorists and increase their risk of a collision.”

CEO Elon Musk once said he could sell up to 500,000 of the stainless steel behemoths a year. In the first three quarters of this year, the company has sold only about 16,000.

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Analysts lower Meta price targets after social media giant says AI capex will keep climbing

Meta may have posted record revenue Wednesday but the stock is deeply in the red in the wake of its third-quarter earnings report, after the social media company said that its capital expenditure on AI would continue to rise.

The earnings prompted a number of analysts to lower their price targets or downgrade the stock.

RBC Capital lowered its price target to $810 from $840. Bank of America Securities lowered its price target to $810 from $900. Barclays, JPMorgan, Deutsche Bank, and Wells Fargo also lowered their price targets on the company.

Earlier today, Benchmark downgraded its rating to a “hold” from a “buy.” Oppenheimer downgraded the company to “perform” from “outperform,” saying the “significant investment in Superintelligence despite unknown revenue opportunity mirrors 2021/2022 Metaverse spending.” Ouch.

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