Amazon CEO Andy Jassy has stated that the rapid implementation of generative artificial intelligence (AI) will lead to a reduction in the number of employees needed for certain tasks. In an interview with CNBC’s Jim Cramer, Jassy explained that while AI would automate some roles, it would also create new job opportunities. “Like with every technical transformation, there will be fewer people doing some of the jobs that the technology actually starts to automate,” Jassy said. “But there’s going to be other jobs.”
Jassy emphasized that AI would free employees from mundane tasks, making their jobs more interesting and enabling them to develop better services more quickly. “It’s going to free us all from rote work and make all our jobs more interesting,” he noted. Amazon plans to continue hiring in areas such as AI, robotics, and other fields despite anticipating a decline in its corporate workforce over the next few years.
This trend is not unique to Amazon. Other tech companies, including Salesforce, Shopify, and Microsoft, are also embracing AI and encouraging its adoption among employees. Salesforce CEO Marc Benioff recently reported that AI is handling 30% to 50% of the work at his company. Klarna’s CEO mentioned that AI investments, combined with natural attrition, have allowed the online lender to reduce its workforce by about 40%.
Amazon has been undergoing workforce adjustments, having cut over 27,000 jobs since early 2022. The company continues to make targeted layoffs in its retail and devices divisions. Despite these reductions, Jassy remains optimistic about the future, highlighting the potential for AI to enhance productivity and create new opportunities.
The company’s stock performance has been relatively flat this year, underperforming the Nasdaq, which has seen a 5.5% gain. Amazon’s shares are currently about 10% below their record high reached in February, while other major tech companies like Meta, Microsoft, and Nvidia are trading at or near their record highs.
