Amazon appears to be on the verge of another round of layoffs as CEO Andy Jassy emphasizes the company’s commitment to artificial intelligence (AI) technology. In a recent message to employees, Jassy highlighted the significant impact of generative AI on Amazon’s operations, stating that it will lead to “efficiency gains” and ultimately reduce the company’s total corporate workforce.
Jassy described generative AI as a “once-in-a-lifetime” technology that is already being utilized in “virtually every corner of the company.” He revealed that Amazon has over 1,000 Generative AI services and applications either in progress or already built, with plans to develop many more. The CEO’s message to Amazon’s 1.5 million employees was clear: the company is “all in” on AI.
While Jassy encouraged employees to embrace AI by educating themselves and participating in training programs, the underlying message was stark. The adoption of AI will “change the way our work is done,” and Amazon will “need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.” This suggests that many employees may be at risk of losing their positions.
Amazon has already made significant cuts in various departments this year. The company reduced its devices and services team by about 100 employees and made similar cuts in its books department. Since 2022, Amazon has laid off approximately 27,000 people, according to CNBC. The latest developments indicate that further reductions are likely on the horizon.
Jassy’s emphasis on AI adoption has raised concerns that the company is prioritizing cost-cutting measures over its workforce. While Amazon has committed $100 billion to investing in AI technologies this year, the long-term commitment to its human employees remains uncertain. The situation echoes the experience of other companies like Klarna, which attempted to replace human customer service representatives with AI but ultimately brought back human staff due to poor outcomes and customer dissatisfaction.
