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Amazon's corporate workforce may shrink as AI takes over routine tasks
Published by Global Banking & Finance Review®
Posted on June 17, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 17, 2025
2 min readLast updated: January 23, 2026
Amazon's workforce may decline as AI automates routine tasks, reshaping roles and enhancing productivity, according to CEO Andy Jassy.
(Reuters) -Rollout of generative AI and agents will reduce Amazon's total corporate workforce in the next few years, Andy Jassy, CEO of the online retailer said in a note to employees on Tuesday.
Artificial intelligence is reshaping the global workforce by automating routine and repetitive tasks, and industry leaders expect this to prompt a reduction or transformation of certain roles across industries.
Despite uncertainties, many experts agree that AI will not lead to mass unemployment, but rather to a reshuffling of the workforce.
"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," Jassy said.
Amazon had more than 1.5 million full-time and part-time employees at the end of last year. The company also hires temporary workers and independent contractors as needed.
The company is using GenAI across internal operations to enhance efficiency and customer experience, Jassy said.
He added that Amazon is using AI to optimize inventory and forecasting in its fulfillment network, upgrade its customer service chatbot and improve product detail pages.
"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 D.A. Davidson analyst Gil Luria.
"The main roles being enhanced right now are in software development, and that is where we are seeing the most pronounced slowdown in hiring."
Microsoft has emphasized that AI will boost productivity, but it has also laid off thousands of employees, while Google too has reportedly laid off hundreds of employees in the past year. Other tech companies are increasingly using AI to write code for both their products and internal operations.
(Reporting by Akash Sriram and Harshita Mary Varghese in Bengaluru; Editing by Alan Barona)
Andy Jassy stated that the rollout of generative AI will lead to a reduction in Amazon's corporate workforce in the coming years.
AI is expected to automate routine tasks, leading to fewer people needed for certain jobs while creating demand for new roles.
Amazon had more than 1.5 million full-time and part-time employees at the end of last year, along with temporary workers and independent contractors.
Amazon is using AI to enhance internal operations, optimize inventory, improve customer service chatbots, and refine product detail pages.
Yes, other tech companies like Microsoft and Google have also laid off thousands of employees while emphasizing that AI will enhance productivity.
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