Amazon to Slash Corporate Jobs Amid Massive AI Push, Says CEO Andy Jassy
Tech giant bets big on artificial intelligence to reshape its workforce and operations, investing $100 billion into its AI future.
In a bold shift toward artificial intelligence, Amazon CEO Andy Jassy announced that the company will gradually reduce its corporate workforce as it leans deeper into AI-powered operations. In a memo sent Tuesday to employees, Jassy stated that Amazon “will need fewer people doing some of the jobs that are being done today” due to rising efficiency from AI technologies.
The news comes as Amazon—one of the world’s largest employers with over 1.5 million employees globally—accelerates its integration of generative AI “in virtually every corner of the company.”
Massive AI Investment and Restructuring
Amazon’s move is backed by a staggering $100 billion investment planned for this year to expand its AI services and the data centers that support them, a significant jump from $83 billion last year. Jassy emphasized that “AI agents” will fundamentally change the way we work and live, adding that while many of these tools are still in development, “they’re coming, and fast.”
These agents, according to Jassy, will dramatically alter the “scope and speed” of Amazon’s innovation for customers, automating tasks, reducing redundancy, and enabling faster product development across departments.
Over 1,000 AI Projects In Progress
Inside Amazon, over a thousand AI-driven services and tools are already operational or under construction. The transition is not just a technological evolution, but a major organizational shift. While some job roles will be phased out, others focused on AI development and oversight will expand.
Amazon Joins a Growing Trend Among Tech Giants
Amazon’s AI strategy mirrors a larger trend sweeping corporate America. Tech and retail firms alike are exploring ways to replace repetitive tasks with automation, especially in the white-collar sector.
Crowdstrike, a cybersecurity firm, recently cut 5% of its workforce citing “AI-driven efficiencies.”
Shopify CEO Tobi Lütke now requires managers to justify additional hiring only if AI can’t handle the workload.
Duolingo has begun replacing contract workers with AI, stating it will limit new headcount unless automation is not feasible.
BT, the UK telecom giant, announced plans to eliminate 40,000 jobs over the next decade, attributing much of the transition to AI’s growing capabilities.
A Bloomberg Intelligence study recently estimated that AI could replace as many as 200,000 jobs in the banking industry alone.
AI’s Disruptive Impact on the Corporate Workforce
Jassy’s memo echoes both optimism and concern as industries enter a new era of AI-powered transformation. While Amazon champions AI as a driver of innovation and speed, many employees may fear job loss and workplace uncertainty.
Still, Jassy remains confident in the company’s direction: “AI will not just assist in the journey—but increasingly do the work. And that’s a game-changer.”
Key Takeaways
Amazon plans to cut corporate jobs as AI boosts operational efficiency.
CEO Andy Jassy says AI will redefine roles across the company.
The company will invest $100 billion in AI infrastructure this year.
Over 1,000 AI tools are currently in use or development inside Amazon.
Amazon joins companies like Shopify, Duolingo, and BT in reshaping teams with AI.