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Amazon CEO Jassy says AI will reduce its
corporate workforce in the next few years
[June 19, 2025]
By MICHELLE
CHAPMAN
Amazon CEO
Andy Jassy anticipates generative artificial intelligence will reduce
its corporate workforce in the next few years as the online giant begins
to increase its usage of the technology.
“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 in a message to
employees. “It’s hard to know exactly where this nets out over time, but
in the next few years, we expect that this will reduce our total
corporate workforce as we get efficiency gains from using AI extensively
across the company.”
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Andy Jassy, Amazon president and CEO, attends the premiere of "The Lord
of the Rings: The Rings of Power" at The Culver Studios on Monday, Aug.
15, 2022, in Culver City, Calif parts of its business, shuttering stores
and slashing 29,000 jobs in an effort to reduce costs. (Photo by Jordan
Strauss/Invision/AP, File) |
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The
executive said that Amazon has more than 1,000 generative AI
services and applications in progress or built, but that figure
is a “small fraction” of what it plans to build.
Jassy encouraged employees to get on board with the e-commerce
company's AI plans.
“As we go through this transformation together, be curious about
AI, educate yourself, attend workshops and take trainings, use
and experiment with AI whenever you can, participate in your
team’s brainstorms to figure out how to invent for our customers
more quickly and expansively, and how to get more done with
scrappier teams,” he said.
Earlier this month Amazon announced that it was planning to
invest $10 billion toward building a campus in North Carolina to
expand its cloud computing and artificial intelligence
infrastructure.
Since 2024 started, Amazon has committed to about $10 billion
apiece to data center projects in Mississippi, Indiana, Ohio and
North Carolina as it ramps up its infrastructure to compete with
other tech giants to meet growing demand for artificial
intelligence products.
The rapid growth of cloud computing and artificial intelligence
has meanwhile fueled demand for energy-hungry data centers that
need power to run servers, storage systems, networking equipment
and cooling systems. Amazon said earlier this month that it will
spend $20 billion on two data center complexes in Pennsylvania.
In March Amazon began testing artificial intelligence-aided
dubbing for select movies and shows offered on its Prime
streaming service. A month earlier, the company rolled out a
generative-AI infused Alexa.
Amazon has also invested more heavily in AI. In November the
company said that it was investing an additional $4 billion in
the artificial intelligence startup Anthropic. Two months
earlier chipmaker Intel said that its foundry business would
make some custom artificial intelligence chips for Amazon Web
Services, which is Amazon's cloud computing unit and a main
driver of its artificial intelligence ambitions.
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