'Normalizing cuts' | AI will shrink Amazon's corporate workforce - CEO Andy Jassy

Amazon delivery drone carrying package

Artificial intelligence is changing the structure of Amazon’s corporate workforce, with CEO Andy Jassy confirming that job reductions are likely as the company expands its use of generative AI.

In a letter published on Amazon’s website, Jassy said: “As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”

The company said it now uses more than 1,000 generative AI services and applications across a range of business functions. It told Newsweek that the expansion will “reduce the company’s total corporate workforce” over the next few years due to efficiency gains.

AI shift likely to influence workforce strategy industry-wide

Jassy said he is uncertain exactly how the transformation will unfold but added, “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”

Industry analysts expect Amazon’s move to influence other large employers. Alex Beene of the University of Tennessee at Martin said: “When concern over artificial intelligence leading to a massive upheaval of workers intensified last year, most major employers attempted to ease fears by discussing a smooth transition and employees still being needed in new roles. News like this from Amazon... seemingly justifies those earlier concerns.”

The company has not provided a timeline for how or when job changes will occur, though further details are expected as the rollout advances.

Critics warn of worker impact and lack of protection

Amazon’s approach has drawn criticism from labor and HR experts who warn of widespread implications for employment practices.

HR consultant, Brian Driscoll, told Newsweek: “Amazon has the scale and cash to be a global leader in responsible AI use and set an example for how to treat employees. Instead, it's using AI to accelerate shareholder value by eliminating human workers. That's not progress.”

He added: “The company openly admits AI will reduce its total workforce but frames that as a net gain for customer experience... What it actually means is that tens of thousands of people will lose their jobs not because they weren't performing, but because they can be replaced by a cheaper worker.”

Driscoll warned that Amazon’s move may normalize corporate workforce reductions across the private sector. “If one of the world's most influential employers is normalizing mass workforce cuts in the name of AI, expect other companies to follow,” he said.

“And without labor protections or regulation, it's workers who will pay the price. Again.”

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