Amazon’s CEO has announced brutal workforce cuts as the company increases its use of Artificial Intelligence.
Amazon boss Andy Jassy said he plans to reduce the company’s corporate workforce over the next few years as AI will make certain roles redundant.
Jassy told employees in a note seen by the Wall Street Journal that AI was a once-in-a-lifetime technological advancement and it has already transformed how Amazon operates.
‘As we roll out more Generative AI and agents, it should change the way our work is done,’ he wrote in the memo.
It is not yet clear how many workers will lose their jobs and when the cuts will come.
‘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,’ Jassy explained.
Those close to the matter told the Journal that a large chunk of the decrease in headcount would hopefully occur via attrition. This means as employees move on their roles will not be filled.
However, this will not cover all of the reductions and layoffs are still expected to occur at some point.
Amazon boss Andy Jassy warned that AI will lead to job cuts
Amazon is the second largest employer in the country and is seen as a bellwether for employment stability.
The company has already slowed hiring, suggesting AI is already influencing the company’s staffing needs.
It is also clear the company is betting big on the new technology, after it revealed plans to splash $100 billion on data centers that AI depends on.
It has pumped further billions into the AI startup Anthropic, the CEO of which recently warned AI could wipe out half of all entry-level white-collar jobs.
Amazon has already begun rolling out AI features on Alexa personal assistant and advertising.
Jassy said he is confident that more generative AI agents will push the company forward.
‘Agents will allow us to start almost everything from a more advanced starting point,’ he wrote.
‘We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,’ he added.
It is not yet clear how many Amazon workers will lose their jobs and when the cuts will come
The Amazon boss said AI has already changed how the company interacts with consumers
Amazon inflicted a wave of painful job cuts in 2022 and 2023, eliminating some 27,000 roles.
The layoffs hit teams at Amazon Web Services as well as the company’s retail and entertainment branches.
It comes as Americans grow increasingly concerned about the impact of AI on the jobs market.
AI is continuing to upend the jobs market with white collar entry-level jobs disappearing fastest and layoffs in tech, finance and consulting gathering pace.
Earlier this month Procter & Gamble, which makes diapers, laundry detergent, and other household items, announced it would cut 7,000 jobs, or about 15 percent of non-manufacturing roles.
As well as cutting jobs, P&G said it will divest a number of its businesses and restructure the organization, chief financial officer Andre Schulten said at a conference earlier this month.
Part of this reorganization will involve more automation and digitization, as well as cutting down management teams, he said.
Microsoft last month also announced a cull of 6,000 staff — about 3 percent of its workforce — targeting managerial flab, after a smaller round of performance-related cuts in January.
