Amazon's Andy Jassy Warns of Job Cuts as AI Reshapes Workforce Roles
In a candid internal memo, Amazon CEO Andy Jassy has outlined the tech giant's evolving stance on artificial intelligence (AI) and how it will reshape its corporate workforce over the coming years. With a clear emphasis on AI’s increasing role in streamlining operations, Jassy said the company expects to reduce its corporate headcount due to “efficiency gains from using AI extensively across the company.”
“As we roll out more Generative AI and agents, it should change the way our work is done,” Jassy wrote to employees. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”
This development is part of Amazon’s larger transformation in response to advancements in AI. The company has already cut over 27,000 jobs since 2022, including roles in its devices and services division and the books business. Now, it appears that AI-driven automation and generative technologies are poised to prompt even deeper changes.
Jassy’s message emphasized the importance of adaptability, suggesting that employees who immerse themselves in AI and its applications will find more opportunities to grow within Amazon. “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 stated.
Amazon currently has more than 1,000 AI services and applications either in development or already operational. However, Jassy stressed that this represents only a “small fraction” of what the company ultimately plans to roll out. The underlying message is clear: AI is no longer just an experimental frontier—it is becoming a central driver of how Amazon does business.
This perspective is not unique to Amazon. Across the tech industry, similar sentiments are being echoed. In April, Shopify CEO Tobi Lütke informed employees that any requests for additional headcount or resources must be accompanied by a justification explaining why AI couldn’t achieve the same goals. Meanwhile, Duolingo CEO Luis von Ahn announced that the company would be shifting to an “AI-first” approach, which includes replacing contract workers with AI solutions.
Jassy’s remarks serve both as a warning and a call to action. While some roles may be phased out, new positions and skill demands are emerging alongside AI’s integration into business workflows. He advised Amazon employees to remain “curious about AI” and explore how these tools can help them “get more done with scrappier teams.”
As companies across industries increasingly adopt AI to streamline their operations, the ability to adapt and innovate will determine which employees remain vital to the future workforce.