AI to Drive Job Cuts, Transform How Work Is Performed

AI to Drive Job Cuts, Transform How Work Is Performed AI to Drive Job Cuts, Transform How Work Is Performed

Amazon CEO Andy Jassy says AI will cut jobs at the ecommerce giant—even as it makes work “more exciting and fun.”

Jassy shared “Some thoughts on Generative AI” in a memo to employees Tuesday. He warned that AI’s rollout will reduce the total workforce over the next few years by improving efficiency.

Amazon had 1.56 million employees at the end of March, up 3% from last year. But Jassy says fewer people will be needed for some tasks as AI takes over, while new roles will also open up.

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Jassy urged staff to “be curious about AI,” attend workshops, and experiment with the tech to help invent faster for customers.

“As we roll out more Generative AI and agents, it should change the way our work is done,”
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 as we get efficiency gains from using AI extensively across the company.”

Amazon is already “investing quite expansively” in generative AI, with 1,000+ AI applications either built or in progress. But Jassy says this is just a fraction of what’s coming.

“There’s so much more to come with Generative AI. I’m energized by our progress, excited about our plans ahead, and looking forward to partnering with you all as we change what’s possible for our customers, partners, and how we work,”
Jassy wrote.

Nine months ago, Jassy ordered a full return to office for corporate employees to boost collaboration and innovation.

Jassy became CEO in July 2021 after decades leading Amazon Web Services and succeeding Jeff Bezos.

Amazon’s AI push signals big workforce changes on the horizon as the company bets heavily on automation to scale faster.

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