Amazon is reportedly winding down its synthetic intelligence analysis lab in Shanghai, marking a major shift within the tech large’s strategic route in China. The lab, established in 2018 by Amazon Internet Providers (AWS), has been central to the corporate’s AI analysis efforts within the area, however now faces closure as a part of a broader restructuring, in keeping with a report by theMonetary Instances.
The transfer follows current job cuts throughout AWS, with Amazon final week confirming that it had decreased a whole bunch of roles globally. Whereas the corporate didn’t immediately handle the closure of the Shanghai lab, a spokesperson reiterated that some positions had been being eradicated throughout AWS. The spokesperson declined to remark particularly on the FT report.
Amazon maintained that the current layoffs arenot primarily pushed by the corporate’s growing reliance on generative AI instruments, a press release that seems to distinction with CEO Andy Jassy’s earlier warning of potential workforce reductions linked to the rising adoption of AI applied sciences.
Based on theMonetary Instances, Wang Minjie, a scientist previously based mostly on the Shanghai AI lab, prompt in a WeChat publish that the crew was “being dissolved on account of strategic changes amid US-China tensions.” Whereas the precise variety of employees affected stays unclear, the choice underscores the mounting operational challenges confronted by American tech corporations in China.
The event comes at a time of heightened scrutiny from Washington on US companies working in China, as geopolitical friction between the 2 international powers continues to escalate. These tensions, coupled with tighter regulatory oversight, seem like influencing strategic choices by multinational companies.
Amazon has but to publicly affirm the closure of the Shanghai lab or present additional particulars concerning its future presence in China.
By the shut of March, Amazon was mentioned to be the second-biggest personal employer in america, trailing solely Walmart Inc. The corporate’s whole headcount stood at roughly 1.56 million. Whereas most of those roles contain warehouse operations reminiscent of packing and logistics, greater than 350,000 staff are in company roles.
(With inputs from Reuters)
