AI will replace roles, corporate workforce to shrink: Amazon CEO

Andy Jassy called generative AI a “once-in-a-lifetime technology,” urging employees to embrace its use, as it will reduce existing roles, create new ones, and shrink the corporate workforce through increased efficiency

Amazon is preparing for a significant reduction in its corporate workforce over the coming years as it integrates generative artificial intelligence (AI) tools across its operations. In an internal memo, CEO Andy Jassy informed employees that the company expects AI-driven efficiencies to reshape job roles and reduce the need for certain positions.

Describing generative AI as a “once-in-a-lifetime technology,” Jassy emphasized its transformative potential and urged employees to adapt by learning how to use AI tools effectively. He noted that the company would require fewer people for some existing roles, while new roles would emerge to support AI-centric operations. “We expect this will reduce our total corporate workforce as we gain efficiency from using AI extensively,” he wrote.

While no specific timeline or number of job cuts was disclosed, industry analysts see the message as an early indication of further restructuring. Amazon has already laid off more than 27,000 employees since 2022 in response to shifting market conditions and a broader push for operational streamlining.

Jassy’s message comes as major tech companies increasingly deploy AI to automate tasks traditionally handled by white-collar workers. At firms like Microsoft and Meta, AI tools now assist in generating as much as 30% of code, enabling smaller teams to maintain high productivity levels.

White-collar roles under threat

The integration of AI into daily workflows signals a broader shift in the technology sector, where high-paying corporate jobs are no longer immune to automation. With generative AI capable of performing tasks such as coding, content creation, and data analysis, companies are re-evaluating staffing needs and long-term hiring strategies.

The potential impact on the job market is drawing concern. Dario Amodei, CEO of AI company Anthropic, recently warned that up to half of all entry-level white-collar roles could be eliminated within five years due to AI adoption. He projected possible unemployment rates rising to 10–20%, triggering widespread debate across business and policy circles.

For Amazon, the transition marks a strategic shift towards AI-driven efficiency. Jassy stressed the importance of agility and learning in this evolving landscape, encouraging employees to embrace leaner teams and faster workflows. As AI continues to advance, the company’s approach may serve as a blueprint for how large enterprises navigate workforce transformation in the digital age.