Amazon expects smaller corporate workforce as AI adoption expands

Amazon expects smaller corporate workforce as AI adoption expands
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Amazon CEO Andy Jassy announced that the company’s corporate workforce is expected to shrink in the coming years due to the growing adoption of generative artificial intelligence (AI), MSN reported. In a memo to employees, Jassy stated that AI will reduce the need for some roles while creating demand for others, encouraging staff to learn and experiment with AI tools.

Since 2022, Amazon has laid off over 27,000 employees, including recent cuts in its North America stores and devices divisions. As of March, Amazon employed approximately 1.56 million full-time and part-time workers globally. Jassy highlighted the use of generative AI across Amazon’s operations, including warehouse robotics, demand forecasting, and inventory management.

He described the technology as a transformative force that is accelerating faster than previous innovations. Other tech leaders, including those at Shopify and Klarna, have echoed similar expectations regarding AI’s impact on workforce structure and operational efficiency.