Amazon CEO Andy Jassy has projected a decrease in the company’s total workforce in the near future, driven by the widespread integration of AI, as stated in a June 17 internal note titled “Some thoughts on Generative AI.”
Jassy, who took the reins as CEO in 2021, highlighted that the incorporation of Generative AI and other AI-driven technologies will change how tasks are executed within the company. “As we roll out more Generative AI and agents, it should change the way our work is done,” he wrote, pointing out that this shift would lead to varying impacts across roles. Although certain positions could see a decrease in required personnel, others are likely to experience a rise in demand. Nonetheless, he anticipates an overall decrease in the corporate workforce resulting from the extensive integration of these AI technologies.
An Amazon representative explained that a decrease in the number of workers doesn’t directly imply layoffs; alternative strategies like offering voluntary early retirement plans might be explored instead. By the end of March, Amazon had 1.56 million employees, marking a 3% year-over-year growth.
Jassy encouraged staff to be receptive to and explore AI applications within their roles, suggesting they “educate yourself” on its potential uses and participate in related training. The goal, he noted, is to foster a leaner, more innovative environment that benefits from AI to achieve greater efficiency and invention for Amazon’s customers.
Amazon is reportedly developing over 1,000 generative AI services and tools, a number Jassy expects to grow as it continues to invest heavily in this technology. This development follows his directive, last year, for corporate employees to resume in-person work, underscoring the importance of in-office collaboration in enhancing innovation and business performance. Jassy expressed his excitement over the progress made in this domain, “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.”
Before leading Amazon, he was at the forefront of Amazon Web Services (AWS) since its founding, a division he oversaw for close to 20 years after becoming an Amazon staff in 1997. He succeeded Jeff Bezos, the previous CEO and now executive chairman of the firm.
