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Amazon to Reduce Corporate Workforce as AI Integration Accelerates

CEO Andy Jassy says efficiency gains from over 1,000 generative AI applications will require employees to learn new skills to fill evolving roles.

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Overview

  • In a June 17 memo, Jassy warned that AI-driven efficiency will shrink Amazon’s corporate headcount in the next few years.
  • Amazon currently has more than 1,000 generative AI services and applications running or in development across its operations.
  • Key AI projects include Alexa+, automated shopping assistants, inventory forecasting tools and customer service chatbots.
  • The company has cut over 27,000 corporate jobs since 2022 and links further reductions to automation rather than economic uncertainty.
  • Shopify and Klarna have adopted similar AI-driven staffing strategies as experts warn automation could threaten many entry-level white-collar roles.