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Amazon to Reduce Corporate Workforce as AI Automation Expands

CEO Andy Jassy predicts efficiency gains from over 1,000 generative AI applications will reduce the company’s corporate headcount.

A maintenance employee works in a robotic warehouse at the Amazon's centre of Bretigny-sur-Orge, on December 14, 2021.
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Overview

  • Andy Jassy said rolling out more generative AI agents will change work processes and require fewer people in some current roles and new hires in others.
  • Amazon is already deploying over 1,000 generative AI services across internal operations to boost productivity and customer experience.
  • Key AI applications include optimizing inventory forecasting, upgrading its customer service chatbot and refining product detail pages.
  • The company reported more than 1.5 million full-time and part-time employees worldwide at the end of last year.
  • Industry experts foresee a workforce reshuffle rather than mass unemployment, noting that peers Microsoft and Google have also automated operations and reduced staff.