The CEO issued a stark warning.
Amazon CEO Andy Jassy recently informed employees in a memo that the company anticipates AI technology will lead to workforce reductions in the coming years, affecting both corporate staff and warehouse workers.
According to The Washington Post, Amazon—currently the second-largest private employer in the U.S.—is preparing for significant changes as AI continues to enhance efficiency across various operations. In his message to employees on Tuesday, Jassy explained that advances in AI are expected to shrink the company’s corporate workforce by streamlining tasks in multiple departments.
Jassy’s memo, which was also shared publicly, emphasized the role AI will play not only for office employees, such as software engineers, but also for those working in Amazon’s fulfillment centers. He noted that AI would help optimize inventory management, improve demand forecasting, and boost the performance of warehouse robots.
This announcement comes amid broader concerns and optimism about AI’s disruptive potential on jobs. Industry figures like Dario Amodei, CEO of AI firm Anthropic, have warned that AI advancements could cause unemployment rates to rise sharply—potentially reaching as high as 20 percent within the next few years.
Amodei, as reported by Breitbart News, has urged transparency about AI’s impact, predicting that widespread job losses could hit numerous sectors, with entry-level white-collar jobs especially vulnerable. He stressed the responsibility of AI creators and policymakers to acknowledge these risks candidly.
While previous AI and automation waves historically had limited effects on overall employment, the pace and scope of current AI breakthroughs have sparked new debates. For instance, a recent decline in computer programmer jobs has fueled speculation that AI is already influencing the labor market.
Amazon and other major tech firms underwent substantial layoffs in 2023 after rapidly expanding their workforces during the pandemic. Since taking over as CEO in 2021, Jassy has emphasized efficiency, introducing metrics like “cost to serve” to better manage operational expenses.
In his memo, Jassy encouraged employees to adopt AI technologies and deepen their understanding of them to stay competitive. He wrote that those who “embrace this change” and contribute to improving Amazon’s AI capabilities will be positioned to make a significant impact and help transform the company.
The memo also highlighted Amazon’s AI-powered offerings, such as shopping chatbots, generative AI tools for advertising, and Alexa+, an enhanced AI version of the Alexa virtual assistant.
