Mumbai, June 18: Amazon CEO Andy Jassy has told employees that increasing use of artificial intelligence (AI) would shrink the company's corporate workforce. This year, the e-commerce giant reduced its workforce by cutting jobs from Amazon Kindle and Amazon Alexa units. In May, the company laid off employees from its Devices and Services Unit to streamline its operations. The recent layoffs affected hundreds of employees. Now, Jassy anticipates generative AI will reduce its corporate workforce in the next few years as the online giant begins to increase its usage of the technology.

In a post published on June 17, 2025, Jassy said AI technology leading to efficiency gains in the company could result in few corporate workers. Amazon is the second-largest private employer in the United States, and this announcement could mean that many jobs might be affected. Intel Layoffs in July 2025 To Affect 15–20% Workforce From Its Foundry Division Responsible for In-House Chip Manufacturing: Reports.

"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 a message to employees. "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."

He further mentioned that technologies like Generative AI were rare and "they come about once-in-a-lifetime...". He mentioned that such technologies could change the possibilities for customers and businesses. He said that due to these reasons, the company was investing heavily in technology. He gave an example of Alexa+ being capable of providing customers with intelligent answers. 

Jassy said Amazon was using Generative AI for its internal operations, such as fulfilment work, to improve inventory placement, forecast demand, and robot efficiency. He said it was all cost-effective to serve and complete speedy delivery. He said, "Today, we have over 1,000 Generative AI services and applications in progress or built, but at our scale, that's a small fraction of what we will ultimately build. We're going to lean in further in the coming months." McKinsey Layoffs: US-Based Global Management Consulting Firm Cuts 10% of Its Workforce, Affecting 5,000 Employees Amid Industry-Wide Slowdown, Legal Trouble.

Amazon CEO Andy Jassy hinted that  GenAI would be implemented in company operations and various other areas in the future . This would improve the overall customer experience while helping the company reduce costs and speed up  operations. This year, over 62,000 employees were laid off in the tech division due to multiple reasons, including AI.

(The above story first appeared on LatestLY on Jun 18, 2025 11:53 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).