Why Amazon’s Corporate Workforce Is Shrinking—The Answer May Surprise You

Amazon, which is the world's largest e-commerce firm, is looking to reduce its corporate workforce over the next few years as generative Artificial Intelligence (AI) and automated agents become more deeply embedded in its operations, CEO Andy Jassy told employees in an internal memo on Tuesday, reported Reuters. 

"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," stated Jassy in the memo. 

Jassy’s comments underscore a broader shift in the global job landscape as AI continues to automate routine tasks. Other global tech firms like Google, Microsoft, etc., also announced plans to downsize its workforce due to the adoption of AI in its processes. 

Microsoft to Lay Off 3% of Workforce as Part of Cost-Cutting and AI Push | Republic World

By the end of 2024, Amazon employed over 1.5 million people across full-time and part-time roles. In addition to its permanent staff, the online retail giant also hires seasonal workers and contractors to meet operational demands.
Jassy noted that Amazon is already deploying generative AI to improve operational efficiency and enhance the customer experience. Some of the key applications where AI is increasingly deployed include improving demand forecasting and inventory management within its logistics network, refining customer support chatbots, and upgrading product detail pages.

The statement reflects a growing sentiment among tech leaders that artificial intelligence is accelerating gains in productivity—and reshaping hiring needs in the process.

“Amazon is communicating a message we have been increasingly hearing from other technology companies – AI is progressing so fast in improving productivity that the need for hiring will diminish over time ,” said Gil Luria, an analyst at D.A. Davidson. “Software development roles, in particular, are being transformed, and we’re seeing the clearest slowdown in hiring in that segment.”

Earlier, Microsoft banked on its AI tools to boost productivity even as it trimmed its workforce by thousands in recent quarters. Alphabe