Amazon CEO says AI will shrink workforce in coming years
What's the story
Amazon CEO Andy Jassy has hinted that the company's corporate workforce could be reduced in the coming years, owing to advancements in artificial intelligence (AI).
In a memo sent to employees on Tuesday, Jassy said the expected change is due to "efficiency gains from using AI extensively across the company."
However, he did not specify how many employees would be affected by this shift.
Job transformation
'We will need fewer people...'
Jassy also noted that the introduction of more generative AI and agents would change the nature of work at Amazon.
He said, "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs."
This statement highlights how AI is expected to transform job roles within the company.
Workforce changes
Amazon has laid off over 27,000 employees since 2022
Since 2022, Amazon has laid off over 27,000 employees. The latest job cuts were made in its devices and services group as well as its books division.
Jassy said that Amazon is already working on or has built over 1,000 AI services and apps. He described this number as just a "small fraction" of what the company plans to launch in the future.
AI adaptation
Jassy's advice to employees
Jassy urged employees to "be curious about AI" and learn how to use it to "get more done with scrappier teams."
He said those who adapt to this change, become conversant in AI, and help build and improve Amazon's internal capabilities will be well-positioned for high-impact roles.
Industry trend
Other companies also plan to reduce workforce due to AI
Other companies have also acknowledged the potential impact of AI on their workforces.
Shopify CEO Tobi Lutke had told employees asking for more resources to explain why they "cannot get what they want done using AI."
Duolingo CEO Luis von Ahn had also said that the company plans to replace contract workers with AI as part of a new "AI-first" approach.