Amazon to cut more jobs as AI boosts efficiency, says CEO Andy Jassy

HIGHLIGHTS

Amazon will reduce more workforce in the coming years.

Amazon CEO explained that this will be driven by the growing use of AI-powered tools that automate tasks.

This highlights a bigger change happening in many industries, where companies are considering replacing human roles with AI.

Amazon to cut more jobs as AI boosts efficiency, says CEO Andy Jassy

Amazon CEO Andy Jassy has told employees that the company will reduce more workforce in the coming years as it leans further into the use of artificial intelligence (AI) to improve efficiency. In a recent memo, Jassy said Amazon is using generative AI across nearly every area of its business. While the technology is helping the company build better services and operate faster, it’s also changing the nature of many jobs.

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“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,” Jassy wrote in the memo shared to the employees. “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.”

For those unaware, Amazon has reportedly already cut over 27,000 jobs since 2022 and most recently cut jobs across its devices and services group and its books division.

Also read: Meta offered $100 mn signing bonuses to poach OpenAI employees, says Sam Altman

In the memo, Jassy explained that the new wave of changes will be driven by the growing use of AI-powered tools that automate tasks and speed up innovation. For example, Amazon’s next-gen Alexa, called Alexa+, now handles complex tasks for users instead of just answering questions. Its AI shopping assistant helps millions of customers discover products, and features like ‘Lens’ allow users to take a picture of an item to find it online. 

Jassy said Amazon already has more than 1,000 AI-related services and applications either built or in progress. “We’re going to lean in further in the coming months,” he added.

Amazon CEO’s memo highlights a bigger change happening in many industries, where companies are considering replacing human roles with AI.

Ayushi Jain

Ayushi Jain

Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile

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