CIOTech Outlook Team | Thursday, 19 June 2025, 03:11 IST
Amazon CEO Andy Jassy announced plans to significantly reduce the company’s corporate workforce in the coming years by leveraging generative AI tools and AI agents. In a memo to Amazon’s 1.5 million full- and part-time employees, Jassy described generative AI as “a once-in-a-lifetime technology” that will reshape the company’s operations.
Jassy emphasized the need for employees to adapt, urging them to learn AI tools and “how to get more done with scrappier teams.” He noted, “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.” While the long-term impact remains uncertain, Jassy predicted a net reduction in the corporate workforce over the next few years as AI drives efficiency. “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 gain efficiency from using AI extensively across the company,” he wrote.
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The announcement signals Amazon’s next wave of layoffs, following 27,000 job cuts in 2022 and additional reductions this year. Experts view Jassy’s memo as a precursor to further workforce streamlining, with AI threatening white-collar roles at tech firms. At companies like Meta and Microsoft, AI tools already generate up to 30% of code, highlighting the technology’s disruptive potential.
Dario Amodei, CEO of Anthropic, warned that AI could eliminate up to half of entry-level white-collar jobs, potentially driving unemployment to 10–20% within one to five years, sparking widespread online debate. As Amazon and other tech giants integrate AI, high-paying tech roles once considered secure now face risks from automation, reshaping the industry’s workforce landscape.
