Amazon (AMZN) Chief Executive Officer (CEO) Andy Jassy says artificial intelligence (A.I.) will replace many of the company’s workers in coming years.
Specifically, Jassy said that Amazon’s corporate workforce is likely to shrink in coming years as the e-commerce giant adopts more A.I. tools and agents.
“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 a memo to employees that was leaked to the media.
“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 added that employees should learn how to use A.I. tools and experiment and figure out “how to get more done with scrappier teams.”
Amazon is using A.I. across its internal operations, including in its fulfillment network where the technology is being deployed to assist with inventory, demand forecasting and warehouse efficiency.
The CEO directive comes after Amazon laid off more than 27,000 employees since 2022 and made several more workforce reductions this year.
In recent months, Amazon has cut about 200 employees in its North America stores unit and a further 100 in its devices and services division.
Amazon had 1.56 million full-time and part-time employees in its global workforce at the end of March this year.
AMZN stock has declined 2% this year to trade at $216.30 U.S. per share.
Tech Insider
