Amazon CEO Jassy Predicts AI to Cut Jobs by 27,000

Amazon CEO Andy Jassy has made it clear that the integration of artificial intelligence (AI) into the company's operations will lead to a reduction in the number of employees needed for certain roles. In a recent conversation with CNBC’s Jim Cramer, Jassy emphasized that AI will automate routine jobs, thereby freeing up employees to focus on more innovative and higher-value tasks.

Jassy’s comments align with a memo he sent to Amazon’s 1.5 million employees, highlighting the dual nature of AI as both a disruptive and transformative force. He noted that AI is already being used to handle tasks such as coding, analytics, and research, making jobs more interesting and enabling staff to concentrate on innovation.

However, Jassy was forthright about the impact on employment. He acknowledged that the adoption of generative AI will result in fewer people being needed for certain roles. In his internal memo, Jassy stated, “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs. It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”

Amazon has already undergone significant layoffs, cutting more than 27,000 jobs over the past few years. Jassy framed the ongoing transformation as an opportunity for those willing to adapt, encouraging employees to “be curious about AI, educate yourself, attend workshops and take trainings,” and to experiment with AI tools to “get more done with scrappier teams.”

Jassy also highlighted that AI will create new job opportunities in areas such as robotics, AI development, and other fields that require human creativity and complex decision-making. He described AI as the most transformative technology of our lifetime, underscoring its significance compared to other technological advancements like the Internet.