Amazon Chief Executive Andy Jassy has told employees that the tech giant expects to have a smaller workforce as generative AI becomes more prevalent in its operations. In a letter to staff, Jassy explained that while AI will eliminate some jobs, it will also create new roles. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” he wrote.
Jassy’s comments come as Amazon continues to invest heavily in AI technology, with over 1,000 generative AI services or applications currently in development. The company has told investors that it expects to spend $100 billion on capital expenditures this year, primarily on data centers to support its AI ambitions.
The news has sparked concerns about the potential impact of AI on employment, with some experts warning that it could lead to significant job displacement. Dario Amodei, CEO of AI startup Anthropic, recently told Axios that he believes AI could eliminate half of all entry-level white-collar jobs and spike unemployment to 10%-20% over the next five years. Amazon has invested $8 billion in Anthropic, which develops the Claude AI chatbot.
Despite these concerns, investors remain generally positive about Amazon’s AI potential. However, the company’s stock price has been volatile, falling by half a percent to $214.86 in afternoon trades following Jassy’s comments. Amazon’s stock is down about 2% year to date, although it has recovered somewhat in recent weeks after being impacted by concerns about tariffs earlier this year.
