Inside Amazon’s AI shake-up: Fewer workers, more Machines

Amazon Chief Executive Officer Andy Jassy has said artificial intelligence (AI) will significantly reshape the company’s workforce, signalling a future with fewer office workers and a growing reliance on smart software.

In an email to staff on Wednesday, Jassy acknowledged that AI-driven efficiency will result in some roles becoming obsolete, while also creating demand for new kinds of jobs.

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

Though the long-term impact on overall staffing is still uncertain, Jassy confirmed that the world’s largest online retailer anticipates a notable decline in office-based roles over the next few years due to AI advancements.

Amazon, which employs about 1.5 million people globally, including roughly 350,000 office workers, has already undergone major layoffs in 2022 and 2023.

While large-scale job cuts are not currently planned, the company reportedly intends to leave many vacant positions unfilled. However, insiders say layoffs are not entirely off the table.

Central to Amazon’s transformation strategy is the development of AI agents — software tools designed to autonomously perform a range of tasks, from web summarisation and language translation to code writing and administrative automation.

“Agents will be teammates that we can call on at various stages of our work,” Jassy said, encouraging employees to adopt AI solutions actively in their day-to-day tasks.

The broader tech industry is also embracing AI in workforce management. Spotify recently announced that any team requesting additional staff must first prove AI cannot do the job.

Meanwhile, language-learning app Duolingo has revealed plans to gradually replace some contract workers with AI systems.