June 17 (Reuters) - Rollout of generative AI and agents
will reduce Amazon's ( AMZN ) total corporate workforce in the
next few years, Andy Jassy, CEO of the online retailer said in a
note to employees on Tuesday.
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 ( AMZN ) 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 ( AMZN ) is using AI to optimize inventory and
forecasting in its fulfillment network, upgrade its customer
service chatbot and improve product detail pages.
"Amazon ( AMZN ) 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 emphasized that AI will boost productivity,
but it has also laid off thousands of employees, while Google
too 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.