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Amazon CEO Jassy says AI will lead to 'fewer people doing some of the jobs' that get automated

1. Amazon plans to reduce workforce due to generative AI adoption. 2. AI will automate some jobs but create new roles in technology. 3. Amazon has cut over 27,000 jobs since 2022 amid layoffs. 4. Company shares are underperforming compared to Nasdaq and competitors. 5. Jassy emphasizes AI will enhance employee roles, making them more engaging.

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FAQ

Why Bearish?

The anticipated workforce reductions may negatively impact investor sentiment, similar to past layoffs.

How important is it?

The shift towards AI and job cuts signifies a transformative period for Amazon, which could influence valuation.

Why Long Term?

Continuous restructuring and AI adoption can lead to prolonged investor caution and market adjustment.

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