Amazon CEO Andy Jassy has told employees that he expects the company’s corporate workforce to decline over the next few years as it increasingly relies on artificial intelligence (AI) to perform various tasks. In an email to employees dated June 17, Jassy explained that generative AI and AI-powered software agents will significantly change how work is done within the company. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy wrote, according to Bloomberg. While it’s difficult to predict the exact outcome, Jassy believes that the extensive use of AI will lead to efficiency gains and ultimately reduce Amazon’s total corporate workforce.
The growing use of AI has raised concerns among industry insiders and outsiders about its potential to replace human workers. As tech companies continue to develop more sophisticated AI systems capable of writing code and handling online tasks, these concerns have intensified. Other major tech companies, such as Shopify and Duolingo, have also been exploring ways to leverage AI to streamline their operations. Shopify now requires explanations for new hiring requests if AI could potentially perform the task, while Duolingo plans to gradually reduce its use of contractors for work that AI can handle.
Amazon, which has long prioritized automation in its logistics and headquarters roles, is heavily investing in AI technology. Jassy highlighted several initiatives, including the Alexa+ voice software, a shopping assistant, and various tools for developers and businesses offered through Amazon Web Services. Internally, Amazon has been using AI tools for tasks such as inventory placement, customer service, and product listings. Jassy encouraged employees to “experiment with AI whenever you can” to maximize its potential benefits.
With 1.56 million employees as of March, Amazon is the second-largest private employer in the US, behind Walmart. While the majority of Amazon’s workforce is engaged in warehouse operations, approximately 350,000 employees hold corporate jobs. As the company continues to integrate AI into its operations, it’s clear that the landscape of corporate employment is poised for significant changes in the coming years.
