Amazon CEO Andy Jassy warns AI will cut jobs
Amazon is gearing up to shrink its corporate workforce with AI. CEO Andy Jassy dropped a blunt message saying AI will "reduce" the company’s headcount over the next few years.
Jassy shared this in a memo posted on Amazon’s website.
"As we roll out more Generative AI and agents, it should change the way our work is done," Jassy said.
"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 currently employs about 1.5 million workers. It’s unclear which roles will be hit or how many will lose jobs.
The news comes as Amazon freezes hiring in its retail business and ramps up spending on AI and data centers. The company announced a $100 billion capital expenditure plan, mostly for AI.
Jassy urged employees to embrace AI with training, workshops, and hands-on use.
"As we go through this transformation together, be curious about AI, educate yourself, attend workshops and take trainings, use and experiment with AI whenever you can, participate in your team’s brainstorms to figure out how to invent for our customers more quickly and expansively, and how to get more done with scrappier teams," Jassy said.
"Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company."
Amazon didn’t comment further when reached by Business Insider.
AI-driven job cuts have become a running theme among big companies. BT plans to cut 55,000 roles by 2030 citing AI. Anthropic’s CEO warned AI could wipe out half of entry-level white-collar jobs. Fiverr’s CEO said AI threatens all office jobs, from programmers to salespeople.