Amazon’s corporate headcount is likely to shrink in the coming years as generative AI and intelligent agents take over routine tasks, CEO Andy Jassy told employees in a note on Tuesday.
Artificial intelligence is rapidly transforming the global labor market by automating repetitive functions. Industry leaders increasingly expect this shift to reduce or reshape certain job categories across various sectors.
“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 said.
While many experts acknowledge the uncertainty that comes with AI’s rise, there is growing consensus that it won’t result in mass unemployment, but instead a significant workforce reshuffling.
Amazon reported over 1.5 million full-time and part-time workers at the close of last year, in addition to seasonal employees and contractors brought on as needed.
Jassy emphasized that the company is leveraging generative AI internally to boost both efficiency and customer experience. Amazon is applying the technology to streamline inventory management, refine forecasting in its fulfillment network, enhance its customer service chatbot, and upgrade product detail pages.
“Amazon is communicating a message we have been increasingly hearing from other technology companies – AI is progressing so fast in improving productivity that the need for hiring will diminish over time,” said D.A. Davidson analyst Gil Luria.
“The main roles being enhanced right now are in software development, and that is where we are seeing the most pronounced slowdown in hiring.”
Microsoft, which has positioned AI as a key productivity tool, has still laid off thousands of employees, while Google has reportedly trimmed hundreds of jobs in the past year. Across the industry, more companies are turning to AI to write code for their platforms and internal systems.
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