Amazon CEO Andy Jassy has stated theimpact generative artificial intelligence (AI) will have on the company’s workforce.
In a recent interview with CNBC’s Jim Cramer, he acknowledged that as AI becomes more widespread, fewer employees will be needed for tasks that machines can automate. “Like with every technical transformation, there will be fewer people doing some of the jobs that the technology actually starts to automate,” Jassy said, adding, “But there’s going to be other jobs.”
Jassy also informed Amazon staff that the corporate workforce is expected to shrink over the coming years as the company adopts AI and software agents, though he admitted it is “hard to know exactly where this nets out over time.” Despite reductions in some areas, Amazon plans to continue hiring in AI, robotics, and other technology sectors.
He emphasised that AI will free workers from repetitive tasks, making jobs more engaging and enabling faster innovation. “Agents will be teammates that we can call on at various stages of our work, and that will get wiser and more helpful with more experience,” Jassy explained.
This trend is reflected across the tech industry. Salesforce CEO Marc Benioff recently stated that AI performs 30% to 50% of work at his company. Similarly, Klarna has cut its workforce by about 40%, partly due to AI adoption. Shopify has also encouraged employees to use AI and requires justification for new hires based on whether AI can perform the tasks.
Amazon itself has cut over 27,000 jobs since early 2022, including recent layoffs in retail and devices divisions. While Amazon’s shares have remained flat this year, other tech giants like Meta, Microsoft, and Nvidia have reached or approached record highs.