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Amazon engineers criticize the company for spending billions on AI while laying off employees: ‘Eager to develop’

Amazon engineers criticize the company for spending billions on AI while laying off employees: 'Eager to develop'

Amazon Engineers Critique Company Amid Job Cuts

During a recent Seattle City Council hearing, Amazon engineers voiced strong criticisms of the company, arguing that it has been investing billions into an AI-driven data center expansion while laying off tens of thousands of employees.

This discussion coincides with the Seattle government’s decision to impose a one-year halt on new large-scale data center constructions, raising concerns regarding energy use, water consumption, and the broader effects of AI infrastructure on local resources.

“It’s been reported that Amazon will spend around $200 billion this year, a significant portion of which is allocated to data centers and AI,” mentioned Patrick Schlosser, a software engineer at Amazon Web Services, during the City Council meeting.

“At the same time, my company has let go of 30,000 employees in just eight months,” Schlosser pointed out. “This shows that major tech firms are rushing to expand their computing capabilities at an alarming pace.”

His remarks reflect rising discontent within Amazon as CEO Andy Jassy pursues aggressive AI expansion while simultaneously executing significant layoffs—the largest in the company’s history.

Since October, approximately 30,000 corporate positions have been eliminated in two rounds of layoffs aimed at streamlining management and cutting down on bureaucratic processes. The job cuts included 14,000 announced in October and another 16,000 in January.

Throughout this time, Amazon has committed to investing about $200 billion in capital this year, primarily focused on AI development and data centers, as outlined in company disclosures shared at the hearing.

These contrasting narratives—job losses vs. increasing AI investments—have led to substantial disapproval from many employees, particularly from the group Amazon Employees for Climate Justice, which comprises both current and former staff.

At the Seattle City Council meeting, Schlosser, along with colleagues Liesl Wigand and Darius Irani, supported the push for stricter regulations on data center construction.

Wigand, who has been with Amazon for over a decade, criticized the company’s focus on “creating an AI that can validate all expenses.”

“The biggest issue lies in the belief that AI is the panacea for every problem, often overlooking the resources required,” Wigand commented. “This mindset is rampant in tech, highlighting the need for local governments to collaborate with community stakeholders to establish rules governing data center construction.”

The committee unanimously approved the one-year moratorium on Wednesday. This proposal surfaced following four developers who approached Seattle City Light about the construction of five large data centers—two later withdrew due to mounting pushback.

The ongoing debate has emerged as a significant issue in Seattle, where local leaders are wrestling with the exploding demand for AI processing power while addressing concerns about energy and water usage, as well as environmental effects.

However, Amazon has pushed back against claims of significant new data center developments in the Seattle area. “We respect our colleagues’ right to express their viewpoints,” stated Amazon spokesperson Margaret Callahan.

“Currently, we have no plans for new data centers in the Seattle metropolitan area.” Callahan also emphasized Amazon’s commitment to being a good community partner, stating they aim to support local economic development while also enhancing energy and water efficiency beyond industry norms.

In response to water consumption criticisms, Amazon clarified that most of its North American data centers do not typically require water for cooling, as outside air is sufficient for most of the year. They claim water-based cooling is used only 10% of the time across the Americas.

The company stated it is moving towards more sustainable practices, like wastewater recycling instead of using drinking water. Amazon operates 24 facilities that utilize 100% recycled water and has partnerships with 130 additional locations globally.

Furthermore, Amazon has set a goal to be “water positive” by 2030, meaning it aims to return more water to its local communities than its data centers consume. The organization claims it is already 53% toward realizing this target.

The Post reached out for comments from Amazon employees involved with climate justice initiatives.

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