Amazon CEO Andy Jassy says AI will cut jobs over time.
Jassy told Amazon’s workforce Tuesday that artificial intelligence will boost efficiency and reduce the company’s total corporate headcount.
"We will need fewer people doing some of the jobs that are being done today, and more people do other types of jobs," Jassy said in a memo.
Amazon is already using generative AI across the entire company, with more than 1.5 million employees worldwide.
The retail giant is ramping up AI investments, planning to spend $100 billion this year on AI services and data centers — up from $83 billion last year.
Jassy also pointed out the rise of “AI agents” that will transform work and innovation.
"I believe AI agents will change how we all work and live. Many of these agents have yet to be built, but they’re coming, and fast," he said.
"They will change the scope and speed at which we can innovate for customers."
Amazon reportedly has over 1,000 AI applications running or in development internally.
The memo fuels fears as AI cuts ripple across corporate America. Bloomberg Intelligence recently warned AI could eliminate 200,000 banking jobs.
Other tech leaders are following suit. Cybersecurity firm Crowdstrike cut 5% of its workforce in May, citing AI-driven efficiencies. Shopify CEO Tobi Lutke demands managers prove why AI can’t handle their tasks before asking for new hires. Duolingo plans to replace contract workers with AI.
BT, the UK telecom giant, announced plans to cut 40,000 jobs over ten years but says that number doesn’t capture AI’s full impact yet.
Andy Jassy, chief executive officer of Amazon.com Inc., in New York on Feb. 26.
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