Amazon CEO Andy Jassy just said AI will cut jobs.
In a memo on Tuesday, Jassy told employees to “get more done with scrappier teams” and admitted AI “would eventually reduce our total corporate workforce.”
Amazon employs about 1.5 million people, making it the second-largest private employer in the U.S. Workplace experts say Jassy’s bluntness might push other CEOs to be more open about AI-driven layoffs. 
Marlo Lyons, executive coach, told Business Insider this is “culture modeling” that helps normalize AI discussions in big companies and smaller firms alike.
Other leaders are also dialing up AI transparency. Shopify’s Tobi Lütke said AI use is now “a baseline expectation” and managers must prove AI can’t handle a job before hiring. Klarna’s Sebastian Siemiatkowski said last year the fintech stopped hiring because AI can do “all of the jobs that we as humans do.” OpenAI’s Sam Altman recently called AI agents “junior-level coworkers.”
Cary Cooper, professor at Manchester Business School, warned companies must be clear about which jobs AI will affect and what retraining is available or risk losing key employees.
Andy Jassy stated:
“Get more done with scrappier teams.”
“Move toward AI would eventually reduce our total corporate workforce.”
Thomas Roulet, Cambridge professor, said linking layoffs to AI isn’t new, but Jassy’s bluntness marks a shift. He calls AI layoffs “a great scapegoat for a lot of unpopular strategic choices.”
Thomas Roulet said:
“Firms do not hesitate to use AI as a reason to downsize, whether it is an excuse or an opportunity.”
“Very often, they downsize before even thinking what they will replace with AI, due to market pressures.”
Peter Cappelli of Wharton says replacing workers with AI is harder than companies admit. Klarna’s 2022 AI-driven layoffs backfired when it had to rehire to fix service issues.
Roulet added most firms act too fast with AI cuts. Real AI integration takes time, trial, and error, not instant job cuts.
Amazon just dropped a bombshell for tech and corporate worlds: AI is coming, and it’s coming for jobs. The memo could change how other CEOs talk about AI and layoffs next.
