Amazon’s corporate workforce is expected to shrink as the company implements artificial intelligence (AI) to handle routine tasks, according to CEO Andy Jassy. In a note to employees on Tuesday, Jassy stated that the integration of generative AI and agents would change the way work is done, reducing the need for certain roles while creating demand for others.
The company’s workforce stood at over 1.5 million full-time and part-time employees at the end of last year, with additional temporary workers and independent contractors. Jassy highlighted that Amazon is already utilizing GenAI across its internal operations to boost efficiency and enhance customer experience. This includes optimizing inventory and forecasting in its fulfillment network, upgrading its customer service chatbot, and improving product detail pages.
“As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy explained.
This move is part of a broader trend in the technology industry, where AI is automating routine and repetitive tasks, potentially reshaping the global workforce. Industry leaders expect this to prompt a reduction or transformation of certain roles across various sectors. Despite concerns about job losses, many experts believe that AI will lead to a reshuffling of the workforce rather than mass unemployment.
D.A. Davidson analyst Gil Luria noted that Amazon’s message aligns with what other tech companies have been saying – that AI is advancing so rapidly that it will diminish the need for hiring over time. The most significant impact is currently being seen in software development, where hiring has slowed down considerably.
Other major tech companies, such as Microsoft and Google, have also been laying off employees despite emphasizing the productivity benefits of AI. The use of AI to write code for both products and internal operations is becoming increasingly common across the industry.
