Amazon CEO Andy Jassy announced that the company expects to reduce its total corporate workforce as it increasingly relies on artificial intelligence for efficiency gains. In a memo to staff, Jassy indicated that while certain roles will be phased out due to automation, new types of jobs may emerge as Amazon deepens its investment in artificial intelligence technologies. He stated, ´We will need fewer people doing some of the jobs that are being done today, and more people do other types of jobs.´
Jassy highlighted that generative artificial intelligence is being deployed ´in virtually every corner of the company,´ reflecting a significant shift across Amazon´s global operations. With more than 1.5 million employees worldwide, Amazon is set to ramp up its capital expenditure this year to further expand artificial intelligence services and the data centers powering them. Jassy predicted a profound impact from so-called ´artificial intelligence agents,´ which he believes will ´change how we all work and live,´ with their influence arriving sooner than many might expect.
The memo comes amid a broader trend in corporate America, where companies are seeking operational efficiencies through artificial intelligence, often resulting in job reductions. Recent moves by firms such as Crowdstrike and Duolingo, and comments from other industry leaders, underscore how automation is transforming headcount strategies. A study by Bloomberg Intelligence projected that artificial intelligence could eventually displace hundreds of thousands of roles in sectors like banking. Jassy acknowledged this unease, saying that artificial intelligence will fundamentally alter the speed and scope of innovation for Amazon´s customers and the broader workforce landscape.
