Latest news with #Jassy
Int'l Business Times
2 hours ago
- Business
- Int'l Business Times
Amazon's AI Revolution Brings Job Cut Warnings, Relocation Mandate Adds to Employee Uncertainty
Amazon, a global e-commerce and tech giant, which is on the cusp of an artificial intelligence revolution, is sparking significant concerns among its workforce. With whispers of impending job cuts and a recent mandate requiring some employees to relocate, a palpable sense of uncertainty is now hanging over Amazon's vast employee base. Amazon's AI Revolution: A Time of Unease for Employees Amazon CEO Andy Jassy has hinted at workforce reductions, attributing them to the rapid advancements in AI. He has confirmed that the company will require fewer employees as Amazon pursues greater efficiency with Generative AI. The severity of the situation, including how many roles will be cut, remains unconfirmed, but the message clearly tells employees to prepare themselves for upcoming layoffs. Jassy's note, also shared on his public blog, highlights AI's rapid progress and profound impact on business efficiency and operations. Furthermore, Bloomberg reports that Amazon is poised to announce these cuts next month. 'As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,' Jassy wrote in his note to the employees. He added, 'It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.' Efficiency Driven by AI: A Changing Workforce Amazon claims to have developed over 1,000 Generative AI services, with additional applications under development. This year, the company pledged to invest $100 million in AI technologies. Jassy hailed AI as a 'one-in-a-lifetime technology,' stating it will reshape Amazon's operational approach. Beyond the impact of AI, Amazon's workforce is grappling with another pressing issue: a strict relocation policy that leaves many employees with a difficult choice. Forced Moves: The Relocation Ultimatum Citing sources familiar with the situation, Bloomberg reports that Amazon has issued an ultimatum to its corporate employees: move closer to their managers and teams or resign without any severance. Amazon requires employee relocation: No severance offered via My Northwest local news feed. This is really interesting, and a sign of things to come at other companies. AI means fewer employees, which means Corporate will start demanding 'do this or goodbye' workforce… — stevemur (@stevemur) June 20, 2025 According to the report, employees must relocate to key centres, including Seattle, Arlington (Virginia), and Washington, D.C., a mandate that may necessitate cross-country moves for many. Employee Concerns Mount Amidst Changes This policy has sparked fresh concern among Amazon employees, who are already uneasy due to ongoing job reductions and warnings that AI might diminish their roles in the years ahead. A source cited by Bloomberg suggests this new directive could impact thousands of employees across different teams, particularly mid-career staff reluctant to move because of family commitments and spousal careers. The 30-Day Relocation Mandate The company operates numerous satellite offices throughout the US, including in key cities such as New York, Boston, Los Angeles, and Austin. These locations have typically offered employees some choice in where they reside. One employee revealed to Bloomberg that this message was given during a team meeting. Their manager reportedly informed them they had 30 days to decide on relocating. Should they opt against it, they would receive 60 days to resign or start the relocation process. The manager said, ' There would be no severance for employees who resigned in lieu of relocating.' Originally published on IBTimes UK This article is copyrighted by the business news leader
Time of India
3 hours ago
- Business
- Time of India
Amazon layoffs coming - these positions may be phased out, is your job on the list of roles being cut?
Amazon layoffs: Amazon CEO Andy Jassy has officially confirmed what many insiders have been warning for months—Amazon will gradually reduce its corporate workforce over the next few years as it accelerates the rollout of AI across operations. In a June 18 internal memo first reported by Business Insider , Jassy stated that as generative AI tools reshape the way work gets done, the company expects to need fewer employees in traditional roles. This move is not a temporary layoff spree—it's a long-term shift in how Amazon will operate. The focus, Jassy said, is on efficiency through automation , not cost-cutting alone. Which Amazon jobs are most at risk from AI? According to Jassy's memo several key corporate roles are expected to see the biggest impact: Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 임플란트 최대 할인 지원해드려요 임플란터 더 알아보기 Undo Customer service and software development : Jassy explicitly named these as functions being reshaped by AI tools. With over 1,000 AI tools already active inside Amazon—from code-writing bots to customer interaction agents—the demand for traditional developer and service roles will shrink. Alexa division : The voice assistant team is reportedly undergoing deep restructuring. AI is increasingly handling voice-based tasks more efficiently, and sources suggest this team is facing major cuts in 2025. Middle management : Around 14,000 manager-level roles have already been eliminated this year, according to internal leaks. AI enables flatter structures and faster decision-making, reducing the need for layers of leadership. Administrative roles : Jobs in HR, internal communications, compliance, and support —especially those built on repetitive coordination or routine reporting—are seen as easily automatable. How many people are losing their jobs due to AI in 2025? Across the tech industry, AI-related restructuring is having a real human impact. According to data from Challenger, Gray & Christmas, around 20,000 layoffs in just the first five months of 2025 were attributed to 'technological updates' like AI automation. Live Events A Goldman Sachs report from last year predicted that 25% of all jobs across industries could be automated by AI in the near future. That projection is now playing out, especially in companies that were early to adopt AI tools internally. Why is Amazon reducing its workforce now? There's no single trigger—this is part of a long-term AI strategy . Jassy explained the shift is driven by operational transformation, not financial urgency. Here's what's fueling the changes: AI has gone mainstream inside Amazon : More than 1,000 internal AI deployments are in use, ranging from inventory forecasting to automated seller listing tools. Hiring freeze and restructuring : Rather than sudden, sweeping layoffs, Amazon is quietly downsizing through attrition, non-refills, and internal shifts. However, some teams like Alexa, Kindle, and Prime Video have seen direct terminations. Focus on efficiency, not just headcount : Jassy emphasized that AI will free employees from 'rote work,' allowing Amazon to redirect talent into strategic, creative, and innovation roles. Is your Amazon job safe, or could it be automated next? Amazon employees—or anyone in corporate tech—should take note. These roles are considered high-risk as automation scales up: Repetitive corporate functions (HR, internal comms, admin) Middle-management overseeing standard processes Basic customer service and support roles Coding jobs focused on routine or boilerplate work On the other hand, roles that require strategic thinking, creative innovation, product development, or AI system design are expected to stay—and even grow. How can Amazon employees stay relevant in the AI era? Jassy offered clear advice to workers hoping to avoid redundancy as AI reshapes the workforce: Adopt AI tools now : Employees are encouraged to work with internal tools like Amazon Bedrock , Claude , and Sonnet . The more fluent workers are with these systems, the more valuable they become. Upskill or reskill : Amazon is offering training and workshops. Employees should invest in learning AI integration , data analysis , or workflow automation to pivot into new opportunities. Move where the growth is : Teams building or managing AI infrastructure are hiring. If you can transition into these areas, you're more likely to thrive in Amazon's next chapter. What's the big picture on Amazon's AI-driven workforce shift? Amazon isn't alone in this transformation—Microsoft is also preparing thousands of layoffs, mainly in its sales division, to align with its massive $80 billion investment in AI data centers for 2025. Amazon is going even bigger, budgeting around $105 billion, with most of it going toward AI infrastructure for AWS. The trend is clear: as AI becomes central to operations , corporate headcounts will shrink, and the nature of work will evolve. According to Challenger, Gray & Christmas , AI-related 'technological updates' already triggered 20,000 layoffs in just the first five months of 2025. Meanwhile, Goldman Sachs estimates that generative AI could automate nearly 25% of all jobs across industries.
Axios
7 hours ago
- Business
- Axios
Why CEOs are using AI to scare workers
Chief executives are giving employees an AI fright — warning them the new technology could make many workers obsolete, while at the same time urging them to start using it right away. Why it matters: That's a scary and mixed message, and fear is generally considered to have a bad track record as a management technique. At the extremes, managers could actually wind up inhibiting workers from adapting to AI. Catch up quick: In a post earlier this week, Amazon CEO Andy Jassy offered his thoughts on generative AI. In paragraph 15, he gets to the scary bit: The transformation will likely" reduce our total corporate workforce." Jassy is echoing the message of many other leaders. JPMorgan's consumer chief recently told investors AI would allow for a 10% headcount reduction. Other companies have already blamed AI for layoffs. Meanwhile, there's a constant barrage of surveys and dark warnings about AI taking jobs. Zoom out: Here are a few explanations for the wave of hard-nosed AI messaging: 🙏 Genuine belief: Executives are concerned about AI's impact. They believe employees aren't taking it seriously enough, says Brian Elliott, a leadership consultant. Some lean toward "a more balanced message," he says. They suggest they'll be slowing or stopping hiring, while imploring workers to adapt. Shopify CEO Toby Lutke did this in an email to employees. Rather than threaten layoffs, he says using AI is now a "baseline expectation" at the company. Before any new hiring, managers would have to demonstrate that AI couldn't fill the role. Lutke ultimately posted this internal message publicly. 📋 Setting expectations: It's a way to make chief executives look more transparent, and gives them cover to conduct future layoffs without shocking employees, says Jeffrey Sonnenfeld, a professor at Yale School of Management. All this talk has an "inoculation effect," he says. "A warning with an anticipatory alert that preempts later trauma going viral." 📈Appealing to investors: The tough talk is for Wall Street, a signal that a company is on trend. (It doesn't hurt that investors tend to like layoffs.) 📖 Talking their book: AI companies, and the firms making massive investments in the tech, have a story to sell about how valuable it is. "Some of the loudest voices are the AI arms merchants," Elliott points out. They need to free up revenue to pay astronomical sums for AI power and talent. Friction point: Managing through fear doesn't usually work, decades of research has shown. Scaring employees could inspire them to action. But there are "toxic effects over the long run," as Wharton professor Andrew Carton explained in a post a few years ago. It can stifle creativity, inhibit collaboration and lead to burnout, he said.
Sky News AU
11 hours ago
- Business
- Sky News AU
Amazon boss announces it may need ‘fewer' employees in coming years as company explores AI
Amazon employees have had their biggest fears confirmed as the CEO announced an increased use of AI may result in 'fewer' workers needed in the company. In a message shared to Amazon employees this week, boss Andy Jassy stated AI is 'rapidly becoming reality,' as the company continues to invest in the technology. 'It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the country,' he said in the statement. Amazon is continuing to develop Generative AI to 'change the scope and speed at which we can innovate for customers,' and think 'strategically about how to improve customer experiences and invent new ones.' 'Today, we have over 1,000 Generative AI services and applications in progress or built,' Mr Jassy said. Despite the high number of AI systems, Mr Jassy said Amazon is still at the 'relative beginning' of its journey with AI, and encouraged employees to invest in the service. 'Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact.' Frustrated employees have shared their thoughts in internal messages, revealed by Business Insider, claiming Mr Jassy has finally 'said the quiet part out loud.' 'There is nothing more motivating on a Tuesday than reading that your job will be replaced by AI in a few years,' one employee said. 'Our CEO doesn't seem to have a vision for the company other than 'do what we do today cheaper, and also AI will happen',' said another. Other staff said Amazon should look for more ways to work alongside AI, rather than using it to replace employees. 'We need to lead the change in reframing AI as partners (even teammates or colleagues) rather than AI as replacements or tools,' an employee said. It comes after popular language learning app Duolingo came under fire for announcing the platform would only hire new employees if they can prove work could not be automated with AI. 'We'll gradually stop using contractors to do work that AI can handle,' CEO Luis von Ahn said in a statement.
AU Financial Review
16 hours ago
- Business
- AU Financial Review
How AI and tax reform could drive a white-collar squeeze
With the eyes of the world rightly trained on Iran, Amazon chief executive Andy Jassy's warning to his employees about artificial intelligence's threat to their jobs feels like a bit of a sideshow. But in the long run, Jassy's gloomy prediction may turn out to be a deeply consequential moment for many Australians. Jassy's warning that Amazon will end up with a smaller workforce because of AI isn't necessarily new. The potential threat posed to white-collar jobs from the technology has been recognised by several Australian chief executives, including Telstra boss Vicki Brady and Commonwealth Bank's Matt Comyn. But there's a bigger shift already under way in the labour market that could compound the impact of AI.
