Amazon CEO Andy Jassy announced that the company’s use of generative AI and automation tools will likely lead to reductions in its corporate workforce in the coming years.

He made this statement in a note to employees on June 17, 2025, highlighting the changing dynamics of work due to AI.

Jassy explained that generative AI and automated systems would alter job requirements within the company.

“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” he said.

As of the end of 2024, Amazon employed over 1.5 million full-time and part-time workers, along with temporary workers and contractors as necessary.

The announcement comes as other tech giants, including Microsoft and Google, have also integrated AI into their operations while reducing their workforces.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ Diverging views on AI’s impact on employment

Jassy’s announcement reflects the ongoing debate about AI’s true impact on jobs, with a notable gap between expert and public perspectives.

A 2025 Pew Research survey found that 64% of U.S. adults believe AI will lead to fewer jobs overall, while only 39% of AI experts share this pessimistic view1.

This aligns with Amazon’s message that generative AI will reduce certain positions while creating demand for others, rather than simply eliminating jobs across the board.

The transformation aligns with McKinsey’s projection of 12 million occupational shifts by 2030, suggesting a massive workforce reshuffling rather than net job losses2.

Historical patterns from previous technological revolutions indicate that while short-term displacement occurs, new job categories typically emerge that weren’t previously imaginable.

2️⃣ Retail sector accelerating AI adoption with quantifiable benefits

Amazon’s AI implementation strategy follows broader retail industry trends where automation is expected to streamline up to 70% of routine tasks by 20253.

Major retailers are discovering that AI can reduce operational costs in distribution and fulfillment centers by up to 60% – a significant motivation for Amazon with its massive logistics network3.

The company’s investment in AI aligns with industry analysts’ predictions that well-positioned retailers could see margin expansions exceeding 200 basis points through these technologies3.

For context, Amazon’s enormous 1.5 million employee base gives the company both substantial AI implementation challenges and potentially greater cost-saving opportunities than smaller competitors.

3️⃣ Early adoption advantage in a still-maturing technology

Despite the hype around generative AI, only 1% of companies report being “mature” in their AI deployment according to McKinsey research, placing Amazon among the early leaders4.

This positions Amazon to capture a larger share of the projected $4.4 trillion in long-term productivity growth potential from AI in corporate settings4.

The gap between Amazon’s advanced implementation and competitors’ AI maturity explains why the company is among the first major employers publicly announcing workforce adjustments specifically tied to generative AI.

Similar to other tech leaders, Amazon faces the challenge of maintaining employee trust during this transition, as safety and accuracy concerns remain significant barriers to AI adoption across industries4.

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