Amazon CEO Andy Jassy told employees Tuesday the company expects to reduce its corporate workforce in coming years as artificial intelligence takes over tasks currently done by humans.
In a message to staff, Jassy said Amazon will need fewer people in some roles while creating new positions in other areas as the company rolls out more AI tools and automated agents across its operations.
“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,” Jassy said.
The announcement comes as Amazon reports having more than 1,000 AI services and applications either in development or already deployed across the retail giant’s business units.
AI agents to change how work gets done
Jassy said AI agents — software systems that can perform tasks on behalf of users — will fundamentally change how Amazon operates. These agents can research topics, write code, find problems, and automate time-consuming tasks.
“There will be billions of these agents, across every company and in every imaginable field,” Jassy said. “There will also be agents that routinely do things for you outside of work, from shopping to travel to daily chores and tasks.”
The CEO said Amazon plans to make it easier to build these agents and will create new ones across all business units and administrative areas.
Amazon already uses AI in its fulfillment centres to improve inventory placement and demand forecasting, and has rebuilt its customer service chatbot with the technology. The company’s AI shopping assistant now serves tens of millions of customers worldwide.
Workforce transformation ahead
While warning of job cuts, Jassy encouraged employees to prepare for the changes by learning about AI and taking part in training programs.
“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,” he said.
Jassy compared the current AI transformation to the early days of the internet, calling it “the most transformative technology since the Internet.”
AI expansion across Amazon services
The company has integrated AI into multiple consumer-facing features, including Alexa+, described as Amazon’s next-generation personal assistant that can take actions for customers beyond just answering questions.
Amazon has also launched AI-powered shopping features like “Lens,” which lets customers take photos of items to find similar products, and “Buy for Me,” which allows Amazon’s shopping agent to purchase items from other retailers.
Nearly 500,000 Amazon sellers now use AI tools to create product listings and get advice on improving their marketplace performance, according to Jassy’s message.
In Amazon Web Services, the company offers custom AI chips, foundation model services, and development tools for businesses building their own AI applications.
The CEO said Amazon operates “like the world’s largest start-up” and will continue pushing for faster innovation and more streamlined operations, with AI serving as a key catalyst for change.
