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Amazon Warns Corporate Workforce Will Shrink as AI Projects Expand

Jassy says efficiency gains from more than 1,000 generative AI tools will cut hiring needs alongside billions in new infrastructure investments

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Overview

  • Andy Jassy told employees in a June 17 memo that extensive use of AI agents and chatbots across business functions will reduce the total corporate head count over the next few years.
  • Amazon has over 1,000 generative AI services in development or already built, a figure the CEO calls just a fraction of its long-term plans.
  • Rather than immediate mass layoffs, the company expects most reductions to occur through slower hiring amid rising productivity from automation.
  • The e-commerce giant is investing $10 billion in a new North Carolina campus and billions more in data centers to support its growing AI infrastructure.
  • Industry peers from Salesforce to Microsoft are also adjusting hiring strategies around AI, raising concerns about job displacement in sectors like India’s IT services and BPO.