Amazon to Reduce Corporate Workforce as AI Adoption Increases
Amazon CEO Andy Jassy revealed that the company’s corporate workforce is expected to decrease in the coming years as it integrates more generative artificial intelligence tools and agents into its operations.
In a memo to employees, Jassy stated, “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.” He emphasized the importance of employees learning to utilize AI tools effectively, encouraging them to experiment and discover “how to get more done with scrappier teams.”
This announcement comes as Amazon continues to make significant investments in AI technology, having launched numerous products and expanded its data centers to meet the growing demand for AI solutions. The company has already laid off over 27,000 employees since 2022, with recent cuts affecting its North America stores unit and devices and services unit.
As of March, Amazon’s global workforce consisted of 1.56 million full-time and part-time employees. The company is leveraging generative AI across various internal operations, including its fulfillment network, where it enhances inventory placement, demand forecasting, and warehouse robot efficiency.
Other tech companies have made similar announcements regarding AI’s potential to transform their workforces. Shopify CEO Tobi Lutke and Klarna CEO Sebastian Siemiatkowski have both highlighted the impact of AI on their respective companies’ staffing needs.
Jassy has described generative AI as a “once-in-a-lifetime reinvention of everything we know,” noting its potential to revolutionize coding, search, financial services, and shopping. He emphasized that the technology is “saving companies lots of money” and is advancing at an unprecedented pace.
As Amazon continues to adapt to the changing technological landscape, employees are being urged to embrace AI and develop the skills necessary to thrive in an evolving work environment.
