Amazon To Cut Jobs As AI Replaces Corporate Roles

Amazon CEO Andy Jassy revealed that the company will decrease its corporate staff numbers because it plans to rely more on AI.

In a memo to staff on Tuesday, Jassy said AI will bring “efficiency gains” and that “we will need fewer people doing some of the jobs that are being done today, and more people do other types of jobs.”

As first reported by NBC news, Jassy revealed that Amazon is now using generative AI “in virtually every corner of the company,” and believes AI agents will “change how we all work and live.” Though many of these tools have yet to be built, “they’re coming, and fast,” he added.

The global workforce of Amazon exceeds 1.5 million people, while the company dedicates $100 billion this year to AI development and data center growth, beyond last year’s $83 billion investment. The company maintains more than 1,000 AI-powered tools, which are either operational or under development within its internal systems, as reported by NBC.

Jassy’s statement is part of a broader trend across industries, where AI adoption is reshaping staffing needs, as noted by NBC.

The Bloomberg Intelligence study forecasts that AI technology will eliminate between 200,000 and 300,000 positions in the banking sector. The cybersecurity firm Crowdstrike conducted a 5% workforce reduction because AI technology improved operational efficiency, as reported by FT.

Shopify CEO Tobi Lutke has instructed managers to demonstrate that AI solutions cannot perform specific tasks before they can approve new hires, noted FT. Language app Duolingo also announced plans to reduce contractor roles due to AI capabilities

In line with this, LinkedIn’s Aneesh Raman warned that AI is wiping out entry-level roles vital for early career growth. “It is our office workers who are staring down the same kind of technological and economic disruption,” Raman said, likening it to the loss of manufacturing jobs in the 1980s. The disappearance of entry-level opportunities may worsen inequality, locking out those without privileged backgrounds.

The United Nations Trade and Development (UNCTAD) also released a report warning that AI could impact 40% of global jobs. While AI can enhance productivity and support workers, especially in developing nations, it may also deepen global inequality.

UNCTAD urges governments to ensure AI benefits are shared fairly and calls for investment in education and infrastructure to prepare the workforce.

The transition will accelerate customer innovation, according to Jassy, yet many employees face increasing job uncertainty because of automation.