Amazon CEO predicts AI will shrink workforce, altering job types, but won’t lead to immediate mass layoffs.

Amazon CEO Andy Jassy has indicated that advancements in artificial intelligence (AI) will likely lead to a decrease in the workforce within the company in the coming years.

In a recent communication to employees, Jassy described generative AI as a transformative technology that is already changing Amazon’s operations and customer interactions.

While he did not specify the exact extent of job reductions, he acknowledged that improvements in efficiency through AI would result in fewer roles.

Upcoming changes will primarily occur through attrition rather than mass layoffs, as seen in previous years. Certain teams may face layoffs, particularly those related to products like Alexa.

Impacts of AI

Jassy’s remarks are among the strongest from a large corporation regarding the potential impacts of AI on employment.

Various industries, including retail and pharmaceuticals, are adopting AI for multiple functions, which necessitates new job roles but also implies potential job cuts.

Surveys show a significant percentage of employers anticipate downsizing their workforce as a result of AI.

In the tech sector, many companies are prioritising the hiring of individuals with AI skills, as AI tools become integral to business efficiency.

Amazon plans to heavily invest in AI infrastructure. Jassy noted that the company is developing over 1,000 AI agents to enhance its productivity.