Hello! Wednesday is as good an excuse as any for a happy hour. But when it comes to Wall Street’s favorite watering holes, does the Financial District’s Stone Street still have the juice? BI’s William Edwards went to find out.
In today’s big story, Amazon’s massive layoffs are in full swing. Could it be the start of something bigger across corporate America?
What’s on deck:
Markets: Mulling a move to Dubai? The good (tax-free status) and bad (traffic jams) of living and working in UAE’s biggest city.
Tech: The dark reality many female founders face when raising money from VCs.
Business: Getting laid off stinks. Here’s what to do if it happens to you.
But first, cuts are coming.
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The big story
Move fast and use AI
If the AI war on human jobs is really beginning, consider this the shot heard round corporate America.
Amazon hasn’t outright said AI will replace the 14,000 jobs it eliminated on Tuesday. But the technology is clearly playing a key role in its decision to make some of the deepest job cuts in its history.
And when it comes to tech, where one big company goes, others soon follow. That’s why this could be the beginning of a series of mass AI layoffs, BI’s Aki Ito writes.
Some Amazon leaders are calling out AI in their message to staff in the wake of the cuts. Tapas Roy, Amazon’s vice president of device software and services, told employees in an internal memo to “lean in on Al to enhance your effectiveness.”
Meanwhile, Bob Carrigan, the CEO of Audible, didn’t outright mention AI in a Tuesday email, but said there will be changes to “increase the speed of decision-making.”
And the pain might not be over at Amazon. Tuesday’s layoffs mostly impacted early and mid-level managers in the retail division, according to internal data obtained by BI’s Eugene Kim. But some fear AWS, which saw less than 1% of its staff affected, could be a target early next year.
Amazon’s job cuts could be a giant proof of concept for the new business it’s betting on.
Like everyone else in the AI race, one of Amazon’s top priorities is proving its AI tools are worth the price of admission. That hasn’t always been easy, as is evident by Amazon’s Q Developer struggles.
Talking about how great your tools are only gets you so far, though. When the owner of a bulletproof vest company wanted to sell his product, he strapped it on and shot himself in the chest multiple times.
So what better way to advertise the benefits Amazon’s AI tools can bring customers than starting with itself? Our tools are so efficient that we cut 14,000 people and didn’t miss a beat.
It’s a massive risk, as failure would disrupt Amazon’s business at a critical juncture and call into question the value of its AI products.
But with so much on the line, and its back somewhat against the wall, Amazon might not have another choice.
3 things in markets
What it’s like to work and live in Dubai. Migration to the expat-filled city is cementing the UAE’s status as an international business center. BI’s Bradley Saacks recently visited Dubai and spoke with those who have made the move to understand what life is like in the Gulf. The tax-free status and warm weather are nice perks, too.
The (rate cut) show must go on. The ongoing government shutdown means there was no September jobs report, but the Fed is still expected to cut rates this week even without that missing data. Consumers could start to feel relief from lower mortgage and credit-card borrowing costs.
How Goldman Sachs’ managing directors get made. Goldman is expected to promote about 600 people — or 1% of staff — to the rank of MD. BI’s Reed Alexander went behind the scenes for a glimpse of the secretive promotion process.
3 things in tech
The hidden cost of fundraising as a female founder. Venture capitalist Leslie Feinzaig surveyed 180 women founders about building their startups. Though she didn’t ask about sexual harassment on the job, they told her anyway. Female founders say it’s still common while seeking venture capital, and two of them shared with BI what they experienced.
The evolution of Elon Musk’s pay package pitch. It’s not the first time Tesla’s board has asked shareholders to back a package. For Musk’s latest $1 trillion pitch, Tesla is taking a more direct approach, explicitly addressing the fear of losing him as CEO.
The top people in Mustafa Suleyman’s circle. The CEO of Microsoft’s AI division has added nine direct reports, five of whom previously worked at Google or DeepMind, according to organization charts viewed by BI. Suleyman’s team is focused on Microsoft’s consumer AI strategy, like Copilot and Bing. Here’s a breakdown of team changes.
3 things in business
Experiencing a package holdup? It might be because you filled out the customs declaration wrong, UPS CEO Carol Tomé said on the company’s earnings call. The package carrier also reported that it cut 34,000 jobs this year, more than the 20,000 it expected to cut.
PwC caught slipping. The consulting and accounting firm reported that its revenue grew 2.9% to $56.9 billion in the 2025 financial year — marking its third-straight year of slowing revenue growth. It’s falling behind its Big Four peers.
So you got laid off. Now what? Take a breath. Getting laid off comes with initial shock, but it’s not the end of the world (even though it may feel like it). Business Insider assembled a guide of advice from experts on what to do next.
In other news
Grokipedia vs. Wikipedia: See how Elon Musk’s encyclopedia describes 5 hot-button topics.
How one Florida county is saving its public schools.
For this driverless car pioneer, vehicle autonomy has finally arrived. It’s been a long road.
ChatGPT came up with a ‘Game of Thrones’ sequel idea. Now, a judge is letting George RR Martin sue for copyright infringement.
Bill Gates is pushing back against the ‘doomsday outlook’ on climate change.
Trump’s Big Law attorneys say his hush-money criminal conviction should be tossed because of presidential immunity.
OpenAI’s new agreement with Microsoft gives the AI startup more freedom on its quest to raise billions.
I moved from OpenAI to Meta Superintelligence Labs. Here are my tips for getting hired at a top AI company.
What’s happening today
- Federal Open Market Committee decision on interest rates.
- Alphabet, Microsoft, and Meta report earnings.
Dan DeFrancesco, deputy executive editor and anchor, in New York. Hallam Bullock, senior editor, in London. Akin Oyedele, deputy editor, in New York. Grace Lett, editor, in New York. Amanda Yen, associate editor, in New York.
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