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Amazon CEO says it will cut jobs due to AI’s ‘efficiency’

by Investor News Today
June 18, 2025
in Technology
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Amazon CEO says it will cut jobs due to AI’s ‘efficiency’
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Amazon CEO Andy Jassy says developments in AI will “scale back” the corporate’s company headcount over the following few years. In a memo to workers on Tuesday, Jassy writes that Amazon expects the change because of “effectivity positive aspects from utilizing AI extensively throughout the corporate,” with out specifying what number of workers can be affected.

“As we roll out extra Generative AI and brokers, it ought to change the way in which our work is completed,” Jassy says. “We’ll want fewer individuals doing a number of the jobs which are being carried out immediately, and extra individuals doing different kinds of jobs.”

He notes that employees also needs to “be inquisitive about AI” and methods to use it to “get extra carried out with scrappier groups:

Those that embrace this variation, change into accustomed to AI, assist us construct and enhance our AI capabilities internally and ship for purchasers, will probably be well-positioned to have excessive affect and assist us reinvent the corporate.

Different corporations have shared statements about how they count on AI to affect their workforce as nicely. In April, Shopify CEO Tobi Lütke advised workers asking for extra headcount or assets that they need to clarify why they “can’t get what they need carried out utilizing AI.” Duolingo CEO Luis von Ahn additionally said that the corporate plans on changing contract employees with AI as a part of a brand new “AI-first” strategy.



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