Amazon CEO Jassy Predicts AI to Reduce Corporate Jobs by 27,000

Amazon CEO Andy Jassy has acknowledged that the rapid adoption of generative artificial intelligence is set to reduce the number of employees needed for certain roles, as computers increasingly handle tasks traditionally performed by humans. “Like with every technical transformation, there will be fewer people doing some of the jobs that the technology actually starts to automate,” Jassy told in an interview. “But there’s going to be other jobs.”

The shift comes amid growing competition for top AI talent. Just a couple of days ago, Amazon lost a key vice president helping oversee generative artificial intelligence development and the company’s Bedrock service, as the competition for talent heats up. Vasi Philomin said that he left Amazon for another company, without providing specifics. A company spokesperson confirmed that Philomin had recently left after eight years with Amazon. Philomin helped lead generative AI efforts and product strategy, and oversaw foundation models known as Amazon Titan. Reports indicate that Rajesh Sheth, a vice president previously overseeing Amazon Elastic Block Store, had assumed some of Philomin’s responsibilities. Philomin left Amazon earlier in June.

While AI is expected to eliminate some positions, Jassy emphasized that Amazon will continue expanding its workforce in AI, robotics, and advanced technologies. He noted that the shift will allow employees to move away from repetitive tasks and instead focus on more innovative and engaging work. Just recently, Jassy noted that he expects the company’s workforce to decline in the next few years as Amazon embraces generative AI and AI-powered software agents. He told staffers in a memo that it would be “hard to know exactly where this nets out over time” but that the corporate workforce would shrink as Amazon wrings more efficiency out of the technology.

The message is resonating across the tech industry. Other tech leaders have also acknowledged the impact of AI on their workforce. AI will free employees from routine and “make all our jobs more interesting,” while enabling staffers to invent better services more quickly than before. Amazon and other tech companies have also been shrinking their workforces through layoffs over the past several years. Amazon has cut more than 27,000 jobs since the start of 2022, and it has announced smaller, more targeted layoffs in its retail and devices units in recent months.

Amazon is working to bolster its reputation in AI development, after rivals have taken an early lead, particularly with consumer-focused models. The company expects its own success will lead to fewer corporate jobs, according to a memo from CEO Andy Jassy. Job growth limits will be driven in particular by so-called agentic AI, which can perform tasks with minimal or even no additional input from people.