With global labour markets facing mounting uncertainty over artificial intelligence's economic impact, Amazon - the world's second-largest private employer - has delivered a sobering warning about AI-driven workforce displacement among its employees.
Amazon CEO Andy Jassy announced that generative AI will systematically reduce the company's 1.56 million-strong corporate workforce in the coming years.
The internal memo sent to employees explicitly stated that “in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company”, while urging workers to learn how to “get more done with scrappier teams".
“As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy wrote.
“It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
Amazon has already eliminated over 27,000 positions since 2022 - including 200 North America store employees back in January and 100 device unit workers in May, demonstrating systematic workforce optimisation ahead of the broader AI implementation.
The company's aggressive AI adoption spans inventory placement, demand forecasting, warehouse robotics efficiency, and customer service automation - creating what Jassy describes as "once-in-a-lifetime" technological transformation that "completely changes what's possible for customers and businesses."
From Microsoft to Shopify, major technology companies are systematically implementing AI-driven efficiency mandates that prioritise algorithmic productivity over human employment security.
Shopify CEO Tobi Lutke now requires managers to prove why they "cannot get what they want done using AI" before requesting additional headcount; and Klarna has reduced its workforce by 40% through AI investments and natural workforce attrition.
Microsoft CEO Satya Nadella revealed that 30% of company code is now AI-written, even as the company eliminated over 40% of software engineers in recent layoffs - the irony being that engineers are simultaneously told to use AI for half their coding work as they face redundancy.
