Amazon CEO Reveals Next Wave of Job Cuts Amid AI Integration

Amazon CEO Andy Jassy has sent a clear message to the company's 1.5 million employees: the rise of artificial intelligence (AI) will lead to more job cuts. In a recent interview with CNBC’s Jim Cramer, Jassy outlined a vision of an Amazon transformed by AI, one that is more efficient but with fewer people in traditional roles.

Jassy pointed out that, as with every major technological shift, “there will be fewer people doing some of the jobs that the technology actually starts to automate.” AI is already freeing Amazon employees from rote work, making jobs more interesting and enabling staff to focus on innovation and higher-value tasks.

During the interview, Jassy shared an example of how AI agents are now handling coding, analytics, and research tasks within the company. This shift is part of a broader trend where AI is being integrated across Amazon’s operations, from customer service to supply chain management.

Jassy's latest remarks on CNBC align with a memo he sent to employees last month, where he discussed the disruptive and transformative potential of generative AI. He acknowledged that the adoption of generative AI would mean fewer people are needed for certain roles. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said in the memo.

The discussion of potential layoffs comes after Amazon had already reduced over 27,000 jobs in the past few years. Jassy emphasized that the ongoing transformation is an opportunity for those willing to adapt. He encouraged employees to be curious about AI, educate themselves, attend workshops, and take training to experiment with AI tools.

Jassy also highlighted that AI would create new jobs in areas such as robotics, AI development, and other fields requiring human creativity and complex decision-making. “I think that AI and generative AI specifically is the most transformative technology of our lifetime, which is saying a lot, given that we have had the internet,” Jassy said during the CNBC interview.

As Amazon continues to integrate AI, the company is preparing for a workforce that is more adaptable and skilled in emerging technologies. The changes will happen over the next few years as Amazon increases its use of AI, reshaping the future of work for its employees.