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Amazon CEO Jassy says AI will reduce its corporate workforce in the next few years
By MICHELLE CHAPMAN, AP Business Writer
Amazon CEO Andy Jassy anticipates generative artificial intelligence will reduce its corporate workforce in the next few years as the online giant begins to increase its usage of the technology.
“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said in a message to employees. “It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
The executive said that Amazon has more than 1,000 generative AI services and applications in progress or built, but that figure is a “small fraction” of what it plans to build.
Jassy encouraged employees to get on board with the e-commerce company’s AI plans.
“As we go through this transformation together, be curious about AI, educate yourself, attend workshops and take trainings, use and experiment with AI whenever you can, participate in your team’s brainstorms to figure out how to invent for our customers more quickly and expansively, and how to get more done with scrappier teams,” he said.
Earlier this month Amazon announced that it was planning to invest $10 billion toward building a campus in North Carolina to expand its cloud computing and artificial intelligence infrastructure.
Since 2024 started, Amazon has committed to about $10 billion apiece to data center projects in Mississippi, Indiana, Ohio and North Carolina as it ramps up its infrastructure to compete with other tech giants to meet growing demand for artificial intelligence products.
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The rapid growth of cloud computing and artificial intelligence has meanwhile fueled demand for energy-hungry data centers that need power to run servers, storage systems, networking equipment and cooling systems. Amazon said earlier this month that it will spend $20 billion on two data center complexes in Pennsylvania.
In March Amazon began testing artificial intelligence-aided dubbing for select movies and shows offered on its Prime streaming service. A month earlier, the company rolled out a generative-AI infused Alexa.
Amazon has also invested more heavily in AI. In November the company said that it was investing an additional $4 billion in the artificial intelligence startup Anthropic. Two months earlier chipmaker Intel said that its foundry business would make some custom artificial intelligence chips for Amazon Web Services, which is Amazon’s cloud computing unit and a main driver of its artificial intelligence ambitions.
Borrowers looking for lower costs will have to wait as the Fed is unlikely to cut rates
By CHRISTOPHER RUGABER, AP Economics Writer
WASHINGTON (AP) — The inflation-fighters at the Federal Reserve are expected to keep their key interest rate unchanged Wednesday for the fourth straight time. That’s likely to shift attention to how many interest rate cuts they forecast for this year.
It’s widely expected that the 19 Fed officials that participate in the central bank’s interest-rate decisions will project two rate cuts for this year, as they did in December and March. But some economists expect that one or both of those cuts could be pushed back to 2026.
The Fed will almost certainly keep the short-term rate it controls at about 4.3%, economists say, where it has stood since the central bank last cut rates in December. Since then, it has stayed on the sidelines while it evaluates the impact of President Donald Trump’s tariffs and other policy changes on the economy and prices.
Inflation has been cooling since January, and many economists say that without the higher import taxes, the Fed would likely be cutting its rate further. According to the Fed’s preferred measure, inflation dropped to just 2.1% in April, the lowest since last September. Core inflation — which exclude the volatile food and energy categories — was 2.5%.
Those figures suggest inflation is largely coming under control, for now. Yet the Fed’s short-term interest rate remains at an elevated level intended to slow growth and inflation. Some economists argue that with inflation cooling, the Fed could resume its rate reductions.
When the Fed reduces its rate, it often — though not always — leads to lower costs for consumer and business borrowing, including for mortgages, auto loans, and credit cards. Yet financial markets also influence the level of longer-term rates and can keep them elevated even if the Fed reduces the shorter-term rate it controls.
But Fed officials have said they want to see whether Trump’s tariffs boost inflation and for how long. Economists generally believe a tariff hike should at least lead to a one-time increase in prices, as companies seek to offset the cost of higher duties. Many Fed officials, however, are worried that the tariffs could lead to more sustained inflation.
“While theory might suggest that (the Fed) should look through a one-time increase in prices, I would be uncomfortable staking the Fed’s reputation and credibility on theory,” Jeffrey Schmid, president of the Fed’s Kansas City branch and a voting member of the Fed’s interest-rate setting committee, said earlier this month.
The Trump White House has sharply ramped up pressure on Powell to reduce borrowing costs, with Trump himself calling the Fed chair a “numbskull” last week for not cutting. Other officials, including Vice President JD Vance and Commerce Secretary Howard Lutnick, are also calling for a rate reduction.
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Pushing the Fed to cut rates simply to save the government on its interest payments typically raises alarms among economists, because it would threaten the Fed’s congressional mandate to focus on stable prices and maximum employment.
One of Trump’s complaints is that the Fed isn’t cutting rates even as other central banks around the world have reduced their borrowing costs, including in Europe, Canada, and the U.K. On Tuesday, the Bank of Japan kept its key short-term rate unchanged at 0.5%, after actually raising it recently.
But the European Central Bank, Bank of Canada, and Bank of England have reduced their rates this year in part because U.S. tariffs are weakening their economies. So far the U.S. economy is mostly solid, with the unemployment rate low.
The Bank of England has cut its rate twice this year but is expected to keep it unchanged at 4.25% when it meets Thursday.
Deadly listeria outbreak linked to chicken alfredo fettucine sold at Kroger and Walmart
By JONEL ALECCIA, AP Health Writer
A listeria food poisoning outbreak that has killed three people and led to one pregnancy loss is linked to newly recalled heat-and-eat chicken fettucine alfredo products sold at Kroger and Walmart stores, federal health officials said.
The outbreak, which includes at least 17 people in 13 states, began last August, officials said late Tuesday.
FreshRealm, a large food producer with sites in California, Georgia and Indiana, is recalling products made before June 17. The recall includes these products, which were shipped to retail stores:
— 32.8-ounce trays of Marketside Grilled Chicken Alfredo with Fettucine Tender Pasta with Creamy Alfredo Sauce, White Meat Chicken and Shaved Parmesan Cheese with best-by dates of June 27 or earlier.
— 12.3-ounce trays of Marketside Grilled Chicken Alfredo with Fettucine Tender Pasta with Creamy Alfredo Sauce, White Meat Chicken, Broccoli and Shaved Parmesan Cheese with best-by dates of June 26 or earlier.
— 12.5-ounce trays of Home Chef Heat & Eat Chicken Fettucine Alfredo with Pasta, Grilled White Meat Chicken and Parmesan Cheese, with best-by dates of June 19 or earlier.
The strain of listeria bacteria tied to the outbreak has been detected in sick people from August through May, health officials said. The same strain that made people sick was found in a sample of chicken fettucine alfredo during a routine inspection in March. That product was destroyed and never sent to stores. Officials said they have not identified the specific source of the contamination.
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Officials with the U.S. Centers for Disease Control and Prevention said the agency is investigating the outbreak, and planned to release more details. It was not clear which states are involved or where the deaths and pregnancy loss occurred.
Consumers shouldn’t eat the products, which may be in their refrigerators or freezers. They should be thrown away or returned to place of purchase.
Listeria infections can cause serious illness, particularly in older adults, people with weakened immune systems and those who are pregnant or their newborns. Symptoms include fever, muscle aches, headache, stiff neck, confusion, loss of balance and convulsions.
About 1,600 people get sick each year from listeria infections and about 260 die, the CDC said. Federal officials in December said they were revamping protocols to prevent listeria infections after several high-profile outbreaks, including one linked to Boar’s Head deli meats that led to 10 deaths and more than 60 illnesses last year.
The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.



