Amazon CEO confirms AI will shrink white-collar roles

Amazon CEO Andy Jassy stated on Tuesday that AI implementation will lead to a reduction in the company’s corporate workforce, while also changing how work is conducted. According to Jassy, the integration of AI is expected to enhance job functions. The company expects efficiency gains from AI.

Jassy shared his perspectives on generative AI in a memo to Amazon employees. He stated, “As we roll out more Generative AI and agents, it should change the way our work is done.”

He added, “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.” Jassy also noted, “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.”

An Amazon spokesperson clarified that the workforce reduction may not necessarily involve layoffs. The company might offer voluntary early retirement packages as an alternative.

As of March, Amazon reported having 1.56 million employees, which represents a 3% increase from the previous year. Jassy encouraged Amazon employees to actively engage with AI technologies. He urged them to “be curious about AI” and “educate yourself.”

Jassy wrote, “As we go through this transformation together, be curious about AI, educate yourself, attend workshops and take trainings, use and experiment with AI whenever you can, participate in your team’s brainstorms to figure out how to invent for our customers more quickly and expansively, and how to get more done with scrappier teams.”

Nine months prior, Jassy had directed Amazon’s corporate staff to return to the office five days a week, stating that this arrangement would improve the company’s capacity to “invent, collaborate, and be connected enough to each other and our culture to deliver the absolute best for customers and the business.”

Why AWS says AI won’t take your job

According to Jassy’s memo, Amazon is currently investing “quite expansively” in generative AI. To date, the company has over 1,000 generative AI services and applications in progress or already developed. Jassy commented, “but at our scale, that’s a small fraction of what we will ultimately build.”

Jassy also stated, “There’s so much more to come with Generative AI. I’m energized by our progress, excited about our plans ahead, and looking forward to partnering with you all as we change what’s possible for our customers, partners, and how we work.”

Jassy assumed the role of Amazon CEO in July 2021, succeeding founder Jeff Bezos, who now serves as executive chairman. Jassy joined Amazon in 1997 and subsequently established the Amazon Web Services group, which he led for approximately 20 years.

Featured image credit