Amazon will reduce its corporate workforce over the next few years. CEO Andy Jassy confirmed this in a memo to employees on Tuesday.
He stated that the development is due to “efficiency gains” from the widespread use of AI in the company.
According to Jassy, Amazon is releasing more generative AI tools and AI agents. And these tools are making work more efficient.
As a result, fewer employees will be needed for certain tasks. At the same time, the company will require new skills for emerging roles.
Job Loss Due to Automation
This is not Amazon’s first major workforce reduction. Since 2022, the company has laid off over 27,000 employees.
Recent cuts have affected its Alexa division, books department, and other corporate roles. This is a direct reflection of a transition toward AI automation.
Jassy explained that as AI takes on more responsibilities, some positions will naturally phase out.
He did not specify which departments would be most affected. However, his message suggests that the impact will be widespread.
AI Tools in Use
Amazon is currently working on more than 1,000 AI applications and tools, and many are already in use.
These tools perform a variety of tasks, yet Jassy said this represents only a “small fraction” of what the company intends to build.
Employees Urged to Adapt
Despite the looming cuts, Jassy offered advice to employees. He encouraged them to become “conversant in AI.”
Workers who understand and embrace AI will be better positioned to stay. He highlighted the importance of helping the company build and improve its AI systems.
In short, employees must adapt or risk being left behind. Those who learn how to work with AI will remain valuable.
They may also be tapped for new leadership roles as Amazon reshapes itself.
AI-first Strategies
Amazon is not alone; other tech companies are also shifting to AI-first strategies. Shopify CEO Tobi Lütke recently told staff to justify hiring requests by explaining why AI cannot do the job.
At Duolingo, CEO Luis von Ahn confirmed the company will replace many contract workers with AI.
