Amazon expected to reduce its workforce as it embraces AI

Amazon is expected to reduce its workforce over the next few years as it implements more AI services and functionality, the company announced Monday.

 “In virtually every corner of the company, we’re using Generative AI to make customers’ lives better and easier,” Amazon CEO Andy Jassy wrote in a statement. “Technologies like Generative AI are rare; they come about once in a lifetime, and completely change what’s possible for customers and businesses. So, we are investing quite expansively, and the progress we are making is evident.”

The company’s ongoing adaptation of AI is expected to reduce the corporate workforce. While the shift to AI will create some new jobs, according to Jassy, the company expects an overall decline in the number of employees.

“As we roll out more Generative AI and agents, it should change the way our work is done,” Jassy stated. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs. It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”

Where AI will be further used in Amazon

Examples of expanded AI implementation to improve the efficiency of various Amazon sectors include using the technology for inventory placement, demand forecasting, and customer service, which will, in turn, reduce the need for employees in these sectors.

“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 added.

Amazon has undergone several rounds of layoffs over the past few years, while also requiring its corporate employees to return to work in-office.

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