Amazon reduces staff as AI use grows
Amazon expects to reduce the size of its corporate workforce over the next few years as it accelerates its adoption of generative artificial intelligence (AI) across business operations, according to a message sent to employees by CEO Andy Jassy.
In a company-wide communication, Jassy outlined how AI is reshaping Amazon's services, infrastructure, and internal processes, and confirmed that increased automation will affect staffing levels.
The use of AI, particularly generative technologies, is forecast to streamline routine tasks and create new types of roles, while rendering others redundant.
Amazon has deployed over 1,000 generative AI tools and applications, with more in development across Alexa, retail, advertising, and AWS. These include smarter voice assistants, AI-driven shopping features, and advanced developer tools for AI model training and deployment.
The company's AI-powered shopping assistant is now used by tens of millions globally, while half a million sellers are making use of AI support to optimise listings.
Internally, generative AI is being applied to areas such as inventory placement, forecasting, robotics, and customer service chatbots. These tools are credited with improving efficiency and reducing operational costs.
Jassy stated that the shift toward AI will change how work is carried out at Amazon, likely reducing the number of employees required for certain corporate roles.
He did not specify which departments will be affected or when reductions might begin but emphasised that the company will require more workers in areas aligned with AI development and oversight.
'As we roll out more generative AI and agents, it should change the way our work is done,' Jassy said. 'We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.'
Jassy highlighted the potential of generative AI agents—systems capable of performing complex tasks on behalf of users—as a central focus of Amazon's innovation strategy.
These agents are expected to support customers and staff by automating tasks such as summarising research, writing code, and generating insights.
Amazon aims to operate 'like the world's largest start-up,' according to Jassy, pushing for faster innovation, leaner teams, and increased ownership at all levels.
Employees are being encouraged to engage with AI tools, attend training sessions, and contribute to the company's evolving technology initiatives.
The workforce impact comes amid broader industry trends in which companies across sectors are assessing how AI can be used to drive productivity and reduce labour costs.
Amazon's approach signals that generative AI will play a central role in reshaping not only its customer offerings but also its internal organisation and long-term employment structure.
"Amazon reduces staff as AI use grows" was originally created and published by Retail Insight Network, a GlobalData owned brand.
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