Credited from: REUTERS
Amazon is preparing for a significant reduction in its total corporate workforce as the company integrates generative AI and agents into its operations, according to CEO Andy Jassy. In a memo to employees, Jassy stated, "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," highlighting a restructuring driven by AI technologies, according to Reuters and Channel News Asia.
The shift towards automation is reflective of broader trends across industries, with many tech companies moving toward similar strategies. Jassy acknowledged uncertainty regarding specific numbers of job cuts, but indicated that the need for traditional roles would diminish as Amazon strives for increased efficiency through AI usage, which he described as "transformative," according to Business Insider and Newsweek.
Amazon's current workforce consists of about 1.5 million employees worldwide, making it one of the largest employers in the United States. The company has already laid off more than 27,000 employees since 2022, with cuts touching its devices and services units as well, according to India Times and CBS News.
Jassy mentioned that Amazon is currently utilizing over 1,000 generative AI services across various business operations, which include improving customer experience and streamlining logistics. He positioned AI as a critical factor in future workforce planning, stating, "We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company," according to Channel News Asia and CBS News.