Amazon CEO: AI Will Lead to Job Cuts but Create New Roles

Amazon CEO Andy Jassy has announced that the company will reduce its corporate workforce over the coming years due to growing efficiency from artificial intelligence. In a memo to employees, Jassy explained that widespread use of generative AI and intelligent agents will change the way work is performed, leading to fewer people needed in some current roles. While no specific number of affected employees was disclosed, the move continues a trend that has already seen over 27,000 job cuts at Amazon since 2022, including recent layoffs in its devices, services, and books divisions. Jassy emphasized that as the company expands its AI tools—more than 1,000 already in development or active—the demand for different kinds of jobs will rise. He encouraged employees to be proactive in learning about AI and to leverage it to improve productivity and make impactful contributions within the company. Those who adapt, he said, will be better positioned for the future and will help reinvent how Amazon operates. This shift is part of a broader trend among major tech firms adjusting their workforce strategies in response to AI. In recent months, Shopify CEO Tobi Lütke and Duolingo CEO Luis von Ahn have made similar comments about AI reducing the need for human labor. Lütke challenged employees to justify additional resources by showing why AI couldn't meet their needs, while Duolingo outlined plans to replace contract workers with AI as part of its new "AI-first" approach. As AI continues to evolve, companies like Amazon are reshaping their internal structures to take full advantage of the technology. While the transition may result in job losses in certain areas, it also signals a shift toward more specialized roles focused on developing, managing, and utilizing AI tools effectively. Jassy’s message is clear: those who adapt will thrive in Amazon’s AI-driven future.