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Amazon Plans Corporate Workforce Cuts as AI Boosts Efficiency

The move signals a shift towards automated corporate processes with implications for worker retraining

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Overview

  • Andy Jassy’s June 17 memo outlined plans to reduce Amazon’s corporate headcount over the next few years due to efficiency gains from generative AI and agents.
  • Microsoft announced in May that it will cut roughly 3% of its global workforce, while Google is offering voluntary exit packages as AI integration accelerates.
  • A World Economic Forum report found that 48% of U.S. employers intend to shrink headcounts because of AI-driven productivity improvements.
  • Workforce experts say administrative and customer service roles face the highest short-term risk from automation, while trades jobs remain more secure.
  • Companies such as Klarna and Shopify have already tied staffing decisions to AI capabilities, with Klarna trimming 40% of its workforce and Shopify requiring proof that roles cannot be automated before hiring.