

Yes, it’s the exact same practice.
The main difference, though, is that Amazon as a company doesn’t rely on this “just walk out” business in a capacity that is relevant to the overall financial situation of the company. So Amazon churns along, while that one insignificant business unit gets quietly shut down.
For this company in this post, though, they don’t have a trillion dollar business subsidizing the losses from this AI scheme.
I’m not sure that would work. Admins need to manage their instance users, yes, but they also need to look out for the posts and comments in the communities hosted on their instance, and be one level of appeal above the mods of those communities. Including the ability to actually delete content hosted in those communities, or cached media on their own servers, in response to legal obligations.