The CEO of Amazon imagines a future where AI robots, or agents, take over jobs currently held by employees in the company’s offices.
In a memo to employees released by Amazon on Tuesday, CEO Andy Jassy indicated that the company plans to cut its corporate workforce in the next few years as it increasingly utilizes generative AI tools for office tasks.
Jassy mentioned, “As we implement more generative AI and agents, this will transform how we work. We will require fewer individuals for certain roles filled today and more for different types of positions.”
He further noted that embracing AI would lead to a reduction in the overall corporate staff due to efficiency improvements from widespread AI use throughout the company. With about 1.5 million employees globally, Amazon stands as the second-largest private employer in the U.S.
When asked for further comments, an Amazon representative referred back to the original memo.
On Tuesday, Amazon’s stock fell slightly, dipping by 0.4% by 3:45 p.m. EST.
Amazon’s significant investment in AI
According to Jassy, Amazon is “investing significantly” in generative AI technology, highlighting that “the progress we’re achieving is clear.”
“Many of these agents are still in development, but there’s no doubt they are on their way and arriving quickly,” the CEO noted in his memo.
Amazon began to enhance its role in the generative AI industry with the launch of the Amazon Echo smart speaker in 2014, marking its first venture into virtual assistant technology with Alexa. This February, the company introduced Alexa+, an upgraded version of the AI assistant that promises to be “more conversational, smarter, and personalized.”
AI functionalities have been integrated into Amazon’s e-commerce platforms through features like “Buy for Me,” allowing customers to ask a shopping assistant to make purchases on their behalf, and “Recommended Size,” which estimates clothing sizes based on past transactions. According to Jassy, tens of millions of customers use Amazon’s AI shopping assistant.
AI replacing creative roles for some
In his memo, Jassy painted a picture of a future where AI agents handle mundane tasks, enabling human employees to engage in more creative work.
“Agents will allow us to begin almost everything with a more advanced foundation,” Jassy explained. “We’ll spend less time on repetitive tasks and focus more on strategizing ways to enhance customer experiences and innovate new ones.”
However, this shift towards AI has faced backlash from certain office workers at Amazon. Software engineers recently interviewed by the New York Times reported a heightened work atmosphere where they are encouraged to utilize AI to boost productivity and meet elevated output targets, resulting in jobs becoming “more mechanical, less thoughtful, and significantly faster-paced.”
Overall, Amazon currently has 1,000 generative AI services and applications either under development or already operational, which Jassy described as a “small fraction” of the company’s ultimate ambitions.
This commitment to AI investment follows Amazon’s announcement in May to eliminate 100 positions in its devices and services department, confirmed by a company spokesperson.
