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Amazon to Shrink Corporate Workforce as AI Drives Efficiency

Jassy urges employees to learn new AI skills to prepare for automation-led changes

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Overview

  • In a June 17 memo, CEO Andy Jassy said generative AI and automated agents will over the next few years reduce Amazon’s corporate headcount as the technology delivers efficiency gains.
  • Amazon has built or is developing more than 1,000 generative AI services and applications to streamline operations from inventory forecasting to customer service chatbots.
  • The company has cut over 27,000 corporate jobs since 2022 and signaled that further reductions are likely as AI replaces routine tasks.
  • Jassy told employees to attend workshops, experiment with AI tools and become conversant in the technology to thrive in new roles.
  • Other tech giants such as Shopify and Microsoft are similarly integrating AI, and experts warn that automation could push unemployment rates up to 20 percent in coming years.