What: Amazon and Target are implementing significant job cuts as artificial intelligence and automation reshape the structure and skill requirements of the retail workforce.

Why it is important: This development reflects a sector-wide shift toward automation, echoing recent findings on the growing impact of AI on retail employment and operational models.

Amazon and Target’s recent decisions to reduce their workforce underscore the accelerating influence of artificial intelligence and automation across the retail sector. These job cuts are not isolated incidents but rather part of a broader transformation, as leading retailers restructure operations to integrate advanced technologies. The adoption of AI is fundamentally changing the composition of retail workforces, with a particular impact on entry-level and support roles, and is prompting a reevaluation of the skills required for future employment. As automation streamlines processes and boosts productivity, companies are compelled to balance efficiency gains with the need to invest in employee training and development. This shift is also driving a redefinition of productivity, moving beyond cost-cutting to focus on value creation through technology-enabled human capability. The evolving landscape highlights the necessity for retailers to adapt quickly, ensuring their workforce remains relevant and competitive in an era increasingly shaped by digital innovation.

IADS Notes: Amazon’s October 2025 announcement of 14,000 layoffs illustrates the sector’s rapid move toward automation, as reported by Le Monde in October 2025. The same month, Le Monde highlighted how AI is accelerating workforce changes, especially in entry-level and white-collar roles. Stanford Digital Economy Lab’s September 2025 report emphasised the shift toward workforce augmentation, while BCG’s September 2025 analysis revealed that only 36% of retail workers feel prepared for AI-driven change. Forbes in March 2025 documented a 4.5% annual productivity growth among leading retailers, reinforcing the importance of reinvesting in both technology and people.

Amazon and Target job cuts reveal how AI is reshaping the retail workforce