Amazon CEO Andy Jassy has warned that the rollout of generative AI and agents will lead to a reduction in the company’s total corporate workforce over the next few years. In a note to employees on Tuesday, Jassy explained that while artificial intelligence is reshaping the global workforce by automating routine and repetitive tasks, it will not lead to mass unemployment but rather a reshuffling of roles.
“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 said. Amazon currently employs over 1.5 million full-time and part-time workers, in addition to hiring temporary workers and independent contractors as needed.
The company is already utilizing GenAI across its internal operations to enhance efficiency and customer experience. This includes optimizing inventory and forecasting in its fulfillment network, upgrading its customer service chatbot, and improving product detail pages. According to D.A. Davidson analyst Gil Luria, Amazon’s message is consistent with what other tech companies are saying: AI is improving productivity to the point where the need for hiring will diminish over time.
The main roles being enhanced by AI are currently in software development, where a slowdown in hiring is most pronounced. This trend is not unique to Amazon; Microsoft and Google have also laid off employees while emphasizing AI’s potential to boost productivity. Other tech companies are increasingly using AI to write code for both products and internal operations, signaling a broader industry shift.
