
Amazon CEO says workforce to shrink amid AI rollout
The head of US IT giant Amazon says the company expects to shrink its workforce as artificial intelligence is applied to a wider range of tasks.
CEO Andy Jassy made the comments in a message to employees that was made public on Tuesday.
He said that over the next few years Amazon anticipates its corporate workforce will be reduced as it gains efficiencies from "using AI extensively across the company."
The message also notes that those who embrace the transition to AI "will be well-positioned to have high impact" ahead and can help "reinvent the company."
Meanwhile, Bloomberg and other media outlets reported on Wednesday that Microsoft is planning to eliminate thousands of jobs mainly in the sales division.
The reports say huge investments in AI development and cost-reduction efforts are behind the planned job cuts.
Earlier in May, Microsoft unveiled a plan to eliminate 6,000 jobs, or nearly 3 percent of its total workforce.

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Japan Times
31 minutes ago
- Japan Times
Oil, war and tariffs tear up global markets' central bank roadmap
Investor unease about an increasingly uncertain environment is rising, as Norway's shock rate cut on Thursday highlights how U.S. tariffs, Middle East conflict and a shaky dollar make global monetary policy and inflation even harder to predict. Norway's krone slid roughly 1% against the dollar and the euro in a sign of how unexpected the move was. And Switzerland, which cut borrowing costs to 0% on Thursday, confounded some expectations among traders for a return to negative rates in the deflation-hit nation, as its central bank warned of a cloudy global outlook. Just a day earlier, the U.S. Federal Reserve kept rates on hold, and chair Jerome Powell said "no one" had conviction on the rate path ahead. The conclusion for markets: monetary policy uncertainty is one more headwind to navigate against a backdrop of geopolitical and trade risks. Global stocks pulled away from recent peaks, a gauge of expected volatility in European equities touched a two-month high as stocks across the region fell and government bonds, usually geopolitical risk havens, sold off. "We're at a moment of considerable policy and macro uncertainty," said BlueBay chief investment officer at RBC Global Asset Management Mark Dowding. "We can't see a clear trend on interest rates," he added, which meant he was holding back from active market bets across the group's investment portfolios. Volatility was set to rise, some investors said, because a choppy dollar and oil prices whipped around by geopolitics meant that central banks were far less able to provide markets and investors a clear route map for the future. "You cannot just take your cues from the central banks anymore as they are facing a harder job of reading the economy, themselves," T.S. Lombard director of European and global macro Davide Oneglia said. Rate-cutting European central banks are not just diverging from the Fed, which is grappling with the inflationary risks of U.S. President Donald Trump's tariffs. They are also struggling to navigate a new era where the dollar, the lynchpin of world trade, commodity prices and asset valuations, has turned weaker and more volatile under trade war stress and government debt anxiety. "That's a massive, massive fundamental shift in global markets that everyone is trying to assess," Monex Europe head of Macro Research Nick Rees said. "All of those standard economic rules of thumb we use for forecasting are completely broken right now." The dollar is down almost 9% against other major currencies this year but has risen following the outbreak of a war between Israel and Iran. European Central Bank policymaker Francois Villeroy de Galhau said on Thursday the ECB might have to adapt its rate cut plans if oil price volatility was long-lasting. The new status quo in markets could well be an era of central bank surprises that create rapid shifts in the market narrative, asset pricing and volatility trends, analysts said. "We're getting into this next cycle in which variables are much more volatile, because, rather than (monetary policy) being just easily predictable, events just take over, and policy and human factors, as we now know with Donald Trump, play an important role," Oneglia said. Norway's surprise cut came because the krone was a "runaway top currency" of the trade-war era, added Societe Generale's head of FX strategy Kit Juckes. With investors chasing around the world to identify stores of wealth that are not the U.S. dollar, meanwhile, the Swiss franc has soared, cutting the costs of imports and pushing the economy into deflation. On Thursday, the franc rose against the dollar as traders saw the SNB's cut as too small to keep deflation at bay. Ninety One multi-asset head John Stopford said the hazard risk was rising for global stocks and that options products that aim to offer protection from incoming volatility looked fairly cheap. He was buying bonds issued in nations where inflation and rates could come down materially, such as New Zealand, but was negative on longer-dated U.S. Treasuries and German Bunds where economic uncertainty was higher and government borrowing was likely to rise. Global stocks remain almost 20% above their April trough, after investors relaxed about tariffs. Stopford said there was more to worry about in the short term. "The stock market feels like it's a thatched house in a hot country with a fire hazard risk, and people aren't charging much to insure the house," Stopford added.

Japan Times
an hour ago
- Japan Times
SpaceX Starship rocket explodes in setback to Musk's Mars mission
SpaceX's massive Starship spacecraft exploded in a dramatic fireball during testing in Texas late on Wednesday, the latest in a series of setbacks for billionaire Elon Musk's Mars rocket program. The explosion occurred around 11 p.m. local time while Starship was on a test stand at its Brownsville, Texas Starbase while preparing for the tenth test flight, SpaceX said in a post on Musk's social-media platform X. The company attributed it to a "major anomaly" and said all personnel were safe. Its engineering teams were investigating the incident, and it was coordinating with local, state and federal agencies regarding environmental and safety impacts, the company said. "Preliminary data suggests that a nitrogen COPV in the payload bay failed below its proof pressure," Musk said in a post on X, in a reference to a nitrogen gas storage unit known as a Composite Overwrapped Pressure Vessel. "If further investigation confirms that this is what happened, it is the first time ever for this design," he continued. The Starship rocket appeared to experience at least two explosions in quick succession, lighting up the night sky and sending debris flying, according to video capturing the moment it exploded. The 400-foot (122-meter) tall Starship rocket system is at the core of Musk's goal of sending humans to Mars. But it has been beset by a string of failures this year. In late May, SpaceX's Starship rocket spun out of control about halfway through a flight without achieving some of its most important testing goals. The Starship lifted off from SpaceX's Starbase, Texas, launch site, flying beyond the point of two previous explosive attempts earlier this year that sent debris streaking over Caribbean islands and forced dozens of airliners to divert course. Two months earlier, the spacecraft exploded in space minutes after lifting off from Texas, prompting the U.S. Federal Aviation Administration (FAA) to halt air traffic in parts of Florida. Videos on social media showed fiery debris streaking through the dusk skies near South Florida and the Bahamas after Starship broke up in space shortly after it began to spin uncontrollably with its engines cut off, a SpaceX live stream of the mission showed. Musk called that explosion "a minor setback." The FAA said earlier this month that it had closed an agency-required investigation into the mishap, citing the probable cause as a hardware failure in one of the engines. SpaceX identified eight corrective actions to prevent a recurrence and the FAA said it verified SpaceX implemented those prior to the late May Starship mission. In January, a Starship rocket broke up in space minutes after launching from Texas, raining debris over Caribbean islands and causing minor damage to a car in the Turks and Caicos Islands.


Asahi Shimbun
4 hours ago
- Asahi Shimbun
Closed schools find new lives as businesses, research centers
A dome tent stands on what was previously the yard of an elementary school, against the background of the former schoolhouse, at the Glamping & Port Yui lodging facility in Shimada, Shizuoka Prefecture, on April 30. (Tetsuro Takehana) SHIMADA, Shizuoka Prefecture—While the declining birthrate has forced many public schools across Japan to close, some have found second lives as camp sites, artificial intelligence research centers, "senbei" rice cracker factories and more. Hundreds of public schools have closed annually over the last two decades or so, leaving many officials wondering how best to use the campuses. However, efforts to repurpose school facilities face common challenges as well. The now closed Yui Elementary School in Shimada, Shizuoka Prefecture, stands surrounded by idyllic tea fields. On a recent day, 21 tents were lined up on its former schoolyard. In addition to the typical dome-shaped tents, some less-typical tents allow guests to bring their dogs. Glamping & Port Yui, as the 'glamorous camping' facility is called, opened for business in March 2022, roughly a year after the school closed. The reception area is in the former school library, where the lyrics of the school song still hang on the wall. The complex takes full advantage of the school facilities and has become popular for the variety of activities it offers. For example, guests can play basketball and other sports in the gymnasium and learn to make matcha-flavored sherbet in test tubes in the science and home economics rooms. The glamping site is about a 15-minute drive from the Tomei Expressway interchange. Iwa Connect Co., the Shimada-based operator of the complex, has signed a 20-year lease agreement with the city authorities. 'Business hotels account for the bulk of the available accommodations in Shimada,' Iwa Connect President Kazuhiro Fukazawa said. 'There used to be few facilities where families could stay.' Despite the COVID-19 pandemic, Glamping & Port Yui achieved an 80 percent occupancy rate in its first year. The occupancy rate remained close to 70 percent in the summer of its second and third years. About 80 percent of the guests come from outside Shizuoka Prefecture, typically from Tokyo and Aichi and Kanagawa prefectures. A community space on the premises regularly hosts a market where locally grown vegetables and other products are sold. A SECOND LIFE In Miyawaka, Fukuoka Prefecture, the facilities of three closed schools have been transformed into AI research and development centers and other facilities. Miyawaka is located roughly midway between Fukuoka and Kita-Kyushu, about a 40-minute drive from either city. Trial Holdings Inc., a Fukuoka-based discount retailing giant that has a training facility in Miyawaka, approached the city about using the closed schools. The Miyawaka city government spent 1.15 billion yen ($7.98 million) to refurbish the former municipal Yoshikawa Elementary School, which closed in 2017. The AI research and development center opened in the school's facilities in 2021. City officials granted Trial Holdings the right to administer the facilities under a private finance initiative (PFI), which aims to utilize the know-how of the private sector in operating public facilities. The school's classrooms were remade into offices and meeting rooms, which are decorated with flasks, beakers and other classroom items, alongside a map of Japan. A farm produce shop was set up on the school's playground and a farm-fresh restaurant was opened in the gymnasium. Trial Holdings also acquired, this time for a fee, the facilities of two other schools that had closed—another elementary school and a junior high school. They are now being used for research and development on retail and physical distribution methods. 'We hope all this will promote long-term residency in the area,' said an official with the city government's secretarial and policy division. Elsewhere in Japan, other school buildings are finding success in their new lives as well. The former Hokuyo Elementary School in Koshimizu, Hokkaido, has been converted into a rice cracker factory with its own shop attached. The former Imazu-Nishi Elementary School in Takashima, Shiga Prefecture, is now a mushroom farm, while the former Shiina Elementary School in Muroto, Kochi Prefecture, has been transformed into an aquarium, attracting many tourists. DETERIORATION LOOMS School closures have increased due to the extensive municipal mergers of the 2000s. Education ministry figures show an average of 440 schools closed annually during the 20 years through fiscal 2023. The annual number of school closures peaked at 597 in fiscal 2012 and has since been on the decline. Of the 8,850 schools that closed during those two decades, 7,612 had not been demolished as of May 2024. Three-quarters of those school facilities were being used in some way, but 1,951 were in disuse. The former Nagase Elementary School in Nabari, Mie Prefecture, which closed in 2008, became a call center for a major transport company the following year. However, the lease was discontinued in 2023, partly because of the age-related deterioration of the 40-year-old schoolhouse. A survey by the education ministry asked respondents to list reasons that uses for closed school facilities had not been decided upon. 'A lack of requests from local communities,' and 'age-related deterioration of buildings,' were both cited in more than 40 percent of the cases. 'It is essential to enlist the help of the private sector to use closed school facilities effectively so they will not be left neglected as a 'negative legacy,' but will instead be used for regional revitalization,' said Toru Hatakeyama of the Organization for Urban-Rural Interchange Revitalization. Because leaving schools and other public facilities disused presents security risks—possible collapse during an earthquake or crimes such as trespassing—the internal affairs ministry in fiscal 2025 began allowing about half of demolition costs for these buildings to be covered by the central government's local allocation tax. Hatakeyama pointed out that if an effective use cannot be found for these closed school facilities, local governments have no choice but to take responsibility and demolish them. (This article was written by Yoshiko Aoyama, Michiko Yoshida and Yoshinobu Motegi.)