Amazon CEO Warns of AI-Driven Job Cuts in White-Collar Workforce
Amazon CEO Andy Jassy has warned employees that artificial intelligence will lead to job losses among the company’s white-collar workforce over the next few years. This message was conveyed through an internal memo sent on Tuesday, where Jassy outlined the growing integration of AI across Amazon’s operations, particularly in its logistics infrastructure.
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“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said. “It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce.”
The memo highlights Amazon’s focus on using AI to improve operational efficiency and cut costs, a strategy increasingly expected by investors as tech giants ramp up AI investments. Amazon faces market pressures, including a 2.5% decline in its share price this year amid broader investor pressure to demonstrate returns on AI investments. The company also contends with external risks, including uncertainties around global trade policies.
Amazon has committed nearly $100 billion in investments in the current financial year, with a significant portion earmarked for AI infrastructure. The company is in a heated race with rivals like Microsoft and Google to secure dominance in the AI space, particularly in cloud computing through Amazon Web Services (AWS).
The latest AI warning comes after significant restructuring. In 2023, Amazon eliminated 27,000 positions in two waves of layoffs, and AWS cut several hundred roles in 2024. Jassy had previously pledged to streamline the company’s structure, reduce bureaucracy, and cut down on middle management layers.
While many tech leaders have been hesitant to explicitly link AI to job cuts, Amazon’s statement marks a departure from that trend. Microsoft, for example, laid off 3% of its global workforce in May, but maintained that the cuts were not a direct result of AI adoption.
