Amazon's corporate workforce may shrink as AI takes over routine tasks

The roll-out of generative AI and agents will reduce Amazon's total corporate workforce in the next few years, Andy Jassy, CEO of the online retailer, said in a note to employees.

Artificial intelligence is reshaping the global workforce by automating routine and repetitive tasks, and industry leaders expect this to prompt a reduction or transformation of certain roles across industries.

Despite uncertainties, many experts agree that AI will not lead to mass unemployment, but rather to a reshuffling of the workforce.

"As we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," Jassy said.

Amazon had more than 1.5 million full-time and part-time employees at the end of last year. The company also hires temporary workers and independent contractors as needed.

The company is using GenAI across internal operations to enhance efficiency and customer experience, Jassy said.

He added that Amazon is using AI to optimise inventory and forecasting in its fulfilment network, upgrade its customer service chatbot and improve product detail pages.

"Amazon is communicating a message we have been increasingly hearing from other technology companies – AI is progressing so fast in improving productivity that the need for hiring will diminish over time," said D.A. Davidson analyst Gil Luria.

"The main roles being enhanced right now are in software development, and that is where we are seeing the most pronounced slowdown in hiring."

Microsoft has emphasised that AI will boost productivity, but it has also laid off thousands of employees, while Google has reportedly laid off hundreds of employees in the past year. Other tech companies are increasingly using AI to write code for both their products and internal operations.