Amazon plans to cut its corporate workforce as it ramps up generative AI tools. CEO Andy Jassy said Tuesday the company will need fewer people in some jobs but more in others over the next few years.
Jassy urged employees to learn AI tools and find ways to “get more done with scrappier teams.” The announcement comes amid recent cuts: over 27,000 layoffs since 2022, including 200 job cuts in North America stores in January and 100 in devices and services in May.
Amazon still employs 1.56 million full- and part-time workers worldwide, plus contractors and temps.
The company is deploying generative AI across operations, including its fulfillment centers, improving inventory placement, demand forecasting, and warehouse robot efficiency.
Shopify CEO Tobi Lutke and Klarna CEO Sebastian Siemiatkowski have made similar comments about AI-driven workforce changes.
Jassy called generative AI a “once-in-a-lifetime reinvention” and said it is “saving companies lots of money” while shifting norms in coding, search, shopping, and financial services.
Andy Jassy stated:
"We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs."
"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."
"How to get more done with scrappier teams."
Read Jassy’s full memo here.