Amazon CEO Andy Jassy has warned employees that the company's corporate workforce is expected to shrink in the coming years due to the advancements in artificial intelligence (AI). In a memo to employees released on Tuesday, June 17, 2025, Jassy described generative AI as a "once-in-a-lifetime technology" that will transform how the company operates. This announcement has sparked discussions about the future of work and the impact of AI on various industries.
Jassy urged employees to proactively learn how to use AI tools and adapt to working in "scrappier teams." He stated that while AI will reduce the need for some existing roles, it will also create opportunities for new types of jobs. However, he anticipates that the overall effect will be a reduction in Amazon's total corporate workforce as the company gains efficiency through extensive AI implementation. Amazon currently has over 1.5 million employees worldwide.
This statement is viewed by many experts as a prelude to another round of layoffs at Amazon. The company has already implemented substantial workforce reductions in recent years, including laying off 27,000 employees in 2022, with further cuts occurring this year. Jassy's message underscores the broader trend of AI-driven automation impacting white-collar jobs, particularly in product-based tech companies, where AI could render some roles redundant.
Amazon is already integrating AI into numerous aspects of its operations. These include Alexa+, shopping tools, fulfillment logistics, advertising, and Amazon Web Services (AWS). Jassy also envisions a future dominated by "AI agents" capable of automating tasks such as research, coding, shopping, and other daily activities. Currently, Amazon has over 1,000 generative AI services and applications in development or already built, which Jassy considers only a "small fraction" of the company's ultimate AI ambitions.
The CEO's memo also addressed the potential for AI to enhance creativity and strategic thinking among employees. He suggested that AI agents could handle tedious tasks, freeing up human workers to focus on more innovative and strategic roles. However, this transition has also raised concerns among some white-collar employees.
To navigate this shift, Jassy has encouraged employees to embrace AI by educating themselves, attending workshops, experimenting with AI tools, and participating in team brainstorming sessions. He emphasized that those who adapt to these changes and contribute to building Amazon's AI capabilities will be well-positioned for future success within the company.
Amazon's move aligns with broader trends in the tech industry, where companies are increasingly prioritizing AI to boost productivity. Major retailers are discovering that AI can reduce operational costs in distribution and fulfillment centers. The company's investment in AI aligns with industry analysts' predictions that well-positioned retailers could see margin expansions exceeding 200 basis points through these technologies.
However, there are differing perspectives on the overall impact of AI on employment. A recent Pew Research survey indicated that 64% of U.S. adults believe AI will lead to fewer jobs overall, while only 39% of AI experts share this view. This highlights the ongoing debate about whether AI will primarily displace workers or simply shift job roles and create new opportunities.
