Amazon CEO Andy Jassy reportedly said that AI will change how companies work. This will require fewer people to do the work that AI can do instead. In a recent interview with Jim Cramer of CNBC, Jassy acknowledged that as technology improves, certain roles of companies are handled more efficiently by machines.
“Like all technological transformations, fewer people do some of the jobs that technology actually starts to automate,” he said.
This may sound like it would come with workers, but Jassy quickly added that AI will bring new opportunities. He said that even if some tasks are automated, more people will be hired in areas like AI development, robotics, and other areas that require human skills and innovation. “But there will be other jobs,” he added, suggesting that transformation is not just a reduction in all jobs, but a change in focus.
This view is part of a major trend across the technology world. Over the past year, several companies have spoken about whether AI is already taking over the daily tasks. Salesforce CEO Marc Benioff recently revealed that AI is currently doing 30-50% of his job at his company. Similarly, other tech giants like Shopify and Microsoft are encouraging employees to make AI a part of their daily work. For example, online lender Klarna has been able to reduce the size of her team by about 40% thanks to AI and due to regular staff exits.
On Amazon, Jassy has already internally warned that the workforce is likely to shrink over the next few years as the company continues to adopt AI at scale. In a note sent to employees earlier this month, he explained that while accurate results are difficult to predict, the company's corporate team is expected to become smaller over time, as it finds ways to work with AI tools more efficiently.
The message is clear. AI plays a bigger role in how Amazon works, and traditional roles may no longer be necessary. However, Jassy believes this gives employees the opportunity to tackle creative tasks that make more sense. In an interview, he said that AI will release people from “Rote Work” and allow them to focus on inventing better products and services at a faster pace.
Even before these latest AI shifts, Amazon has already cut jobs over the past few years. Since early 2022, the company has fired more than 27,000 employees from various divisions. Recently, fewer target layoffs have also been occurring in retail and device teams.
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