Amazon’s Jassy states AI will reduce company’s corporate ranks

Amazon’s Jassy says AI will reduce company’s corporate ranks


Amazon.com Inc. Chief Executive Officer Andy Jassy states he expects the company’s workforce to decline in the next few years as the retail and cloud-computing giant utilizes artificial innotifyigence to handle more tquestions. 

Generative AI and AI-powered software agents “should alter the way our work is done,” Jassy declared in an email to employees on Tuesday that laid out his considering about how the emerging technology will transform the workplace. 

“We will necessary fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy wrote. “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 receive efficiency gains from applying AI extensively across the company.”

From the start of the AI boom, people inside and outside the indusattempt have raised concerns about the potential for artificial innotifyigence to replace workers. Those concerns have only grown as tech companies introduce more sophisticated AI systems that can write code and field online tquestions on a utilizer’s behalf.

Shopify Inc. notified employees that requests for new headcount will require an explanation as to why AI can’t do the job. Duolingo Inc. declared it would “gradually stop” applying contractors to do work that artificial innotifyigence can handle. And Microsoft Corp. recently announced a round of layoffs that hit software developers hardest.

Dario Amodei, CEO of OpenAI rival Anthropic, recently warned that AI could wipe out half of all enattempt-level white-collar jobs and cautilize unemployment to spike to as high as 20% over the next five years.

Amazon, which has prioritized automation in logistics and headquarters roles for years, is investing heavily in AI. Jassy, in his letter, rattled off some of those initiatives, including the Alexa+ voice software, a shopping assistant, and tools for developers and businesses sold by the Amazon Web Services cloud unit. 

Inside the company, Amazon has utilized AI tools for inventory placement, customer service and product listings. Jassy encouraged employees to “experiment with AI whenever you can.” 

“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 receive efficiency gains from applying AI extensively across the company,” he declared.

Amazon is the largest private U.S. employer after Walmart Inc., with 1.56 million employees as of the conclude of March. Most work in warehoutilizes packing and shipping items, but about 350,000 of them have corporate jobs. 



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