More AI, fewer jobs: Amazon CEO tells white-collar employees to prepare for workforce changes driven by automation
Amazon CEO
Andy Jassy has warned employees that artificial intelligence will lead to workforce reductions in the coming years, particularly among the company's white-collar roles. In a memo reportedly dated June 17, Jassy told staff that as Amazon expands its use of AI agents and generative AI technologies, it will need fewer people to perform many existing corporate jobs, a TOI report stated.
Amazon CEO AI Workforce Warning: Corporate roles are likely to shrink
'We will need fewer people doing some of the jobs that are being done today,' Jassy wrote, adding that Amazon expects the shift 'will reduce our total corporate workforce' over time. The announcement impacts roughly 350,000 corporate employees, including those in software engineering, marketing, and administrative roles.
AI at the core of Amazon's future plans
Jassy said Amazon already has more than 1,000 generative AI projects either built or in development. These include the upgraded Alexa+ assistant, AI-driven shopping tools, and a revamped customer service chatbot. The company is also using AI in its fulfillment network to improve inventory placement and demand forecasting.
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'Today, in virtually every corner of the company, we're using Generative AI to make customers' lives better and easier,' Jassy said in the memo. He described AI as a once-in-a-generation technology that is quickly transforming how Amazon serves its customers.
AI agents to handle complex tasks
Jassy forecasted a future dominated by AI agents — software systems capable of conducting research, writing code, summarizing information, and performing everyday tasks. 'There will be billions of these agents, across every company and in every imaginable field,' he wrote.
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These agents are expected to enhance innovation speed and reduce repetitive work across departments. 'Agents will be teammates that we can call on at various stages of our work, and that will get wiser and more helpful with more experience,' he said.
Encouraging employees to adapt
While acknowledging the impact on jobs, Jassy encouraged employees to prepare for the AI shift. 'Be curious about AI, educate yourself, attend workshops and take trainings,' he wrote. He stressed that those who embrace the technology would be 'well-positioned to have high impact.'
Jassy also reflected on his early years at Amazon, comparing the present AI transformation to the internet boom. 'The most transformative technology since the Internet is here,' he said.
AI-driven innovation spans all units
Jassy detailed how AI is already transforming different parts of Amazon's operations:
Alexa+: The new version can take actions on behalf of customers, beyond answering questions.
Shopping features: Tools like 'Lens,' 'Buy for Me,' and 'Recommended Size' enhance user experience.
Seller support: Nearly 500,000 sellers are using generative AI tools to improve listings.
Advertising: Over 50,000 advertisers used AI tools to create and manage campaigns in Q1 alone.
AWS services: AI tools in AWS include Trainium2, SageMaker, Bedrock, and Amazon's own frontier model, Nova.
More agents, leaner teams ahead
Jassy confirmed that Amazon will continue investing heavily in AI and agent development. 'We're going to make it much easier to build agents, and then build (or partner) on several new agents across all of our business units and G&A areas,' he said.
As this transformation progresses, Jassy expects Amazon to operate more like a startup: fast-moving, lean, and innovative. 'AI will be a substantial catalyst here,' he added.
Workforce reduction inevitable but not the end
Jassy did not specify how many jobs may be cut, but he made clear that some roles will be replaced by AI capabilities. At the same time, he said new types of jobs may emerge, and employees who evolve with the shift can still thrive.
'There's so much more to come with Generative AI,' he concluded. 'Those who embrace this change… will be well-positioned to have high impact and help us reinvent the company.'
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