Amazon CEO Andy Jassy has confirmed that the company expects its corporate workforce to shrink over the next few years due to the growing adoption of artificial intelligence. In a memo sent to employees on Tuesday, Jassy cited “efficiency gains from using AI extensively” as a key driver behind the forecasted job reductions.
“As we roll out more Generative AI and agents, it should change the way our work is done,” Jassy wrote. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”
The announcement follows a series of layoffs at Amazon that have seen over 27,000 employees let go since 2022, including recent cuts in the company’s devices, services, and books divisions.
Jassy noted that Amazon currently has over 1,000 AI-powered tools and applications in development or already in use, calling it just a “small fraction” of what’s to come. He encouraged employees to embrace AI, adding that those who do so will be better positioned for success.
“Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company,” Jassy said.
Amazon is not alone in this direction. Shopify CEO Tobi Lütke recently told employees to justify any additional headcount requests by proving the task can’t be handled with AI. Similarly, Duolingo CEO Luis von Ahn stated that the language-learning platform plans to replace some contract workers with AI tools as part of its new “AI-first” strategy.
As the AI transformation accelerates across industries, companies are beginning to restructure their workforces balancing efficiency gains with human capital shifts.
