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Amazon's corporate workforce may shrink as AI takes over routine tasks
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Amazon's corporate workforce may shrink as AI takes over routine tasks
Jun 17, 2025 11:22 AM

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.

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