AI will shrink Amazon's workforce in the coming years, CEO Jassy says

Published: Tuesday, June 17, 2025 at 6:12 pm

Amazon to Reduce Corporate Workforce Through AI Adoption

Amazon CEO Andy Jassy announced Tuesday that the company anticipates a reduction in its corporate workforce in the coming years. This shift is driven by the increasing integration of generative artificial intelligence tools and agents into the company's operations.

In a memo to employees, Jassy stated that the adoption of AI will lead to a need for fewer employees in certain roles, while simultaneously creating opportunities for new types of jobs. While the exact impact and timeline remain uncertain, the company expects the overall corporate workforce to shrink over the next few years.

Jassy emphasized the importance of employees adapting to the changing landscape. He encouraged them to learn how to utilize AI tools, experiment with them, and find ways to increase productivity with smaller teams. This directive underscores Amazon's commitment to embracing AI as a means of streamlining operations and enhancing efficiency.

This announcement follows a period of workforce adjustments at Amazon. Since 2022, the company has laid off over 27,000 employees. Further cuts were made this year, including approximately 200 employees in its North America stores unit in January and another 100 in its devices and services unit in May.

As of the end of March, Amazon's global workforce comprised 1.56 million full-time and part-time employees, according to financial filings. The company also utilizes temporary workers in its warehouse operations and employs contractors.

BNN's Perspective:

While the integration of AI and its potential impact on employment are valid concerns, Amazon's proactive approach to training and encouraging employees to adapt to new technologies is encouraging. The company's focus on efficiency and innovation is a key factor in its continued success. However, it is important to monitor the impact of these changes on the workforce and ensure that affected employees are provided with adequate support and opportunities for retraining or transition.

Keywords: Amazon, AI, artificial intelligence, workforce reduction, layoffs, Andy Jassy, corporate workforce, generative AI, technology, employment, jobs, efficiency, innovation

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