Amazon’s Chief Executive Officer, Andy Jassy, has indicated that the company is likely to see a reduction in its corporate workforce in the coming years, attributing this shift to enhancements in artificial intelligence (AI). In a communication to employees on Tuesday, Jassy mentioned that the anticipated workforce changes will stem from “efficiency gains from using AI extensively across the company,” although he did not disclose specific numbers regarding potential job losses.
“With the rollout of more Generative AI and agents, the nature of our work will evolve,” Jassy stated. “This will result in a decreased need for some current positions while increasing the demand for skills in different areas.”
Since 2022, Amazon has laid off over 27,000 employees, with the latest reductions impacting its devices and services division as well as its books sector. Jassy highlighted that the company currently operates over 1,000 AI services and applications, representing only a “small fraction” of what it plans to develop in the future.
Jassy encouraged employees to cultivate an interest in AI and to explore how it can enhance productivity with leaner teams.
Embracing this transition, familiarizing oneself with AI, and contributing to our internal AI development will position employees to make a significant impact and assist in the company’s reinvention.
Other industry leaders are also vocal about the influence AI may have on their workforce. For instance, Shopify’s CEO Tobi Lütke advised employees seeking more resources to clarify how they could achieve their goals through AI. Similarly, Duolingo’s CEO Luis von Ahn mentioned plans to replace contract workers with AI in line with a new focus on an “AI-first” strategy.
