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Amazon CEO says AI shift will cut jobs, reshape future roles

 

Amazon is gearing up to eliminate another round of jobs. This time around, the focus is on artificial intelligence (AI). In a memo to staff, CEO Andy Jassy explained that the company will increase the adoption of AI. This will bring significant changes to the way it operates, and that means fewer corporate employees.

Describing the generative AI as a ‘once-in-a-lifetime’ technology, Jassy added that the tool is being applied in nearly every corner of Amazon. The applications range from Alexa and online retail to the backstage operations, such as warehouses and customer support.

 

AI Already in Action Across Services

 

As stated by Jassy, Amazon is developing or employing over 1,000 AI-based tools. Amazon’s new Alexa+ is more intelligent and capable of performing actions on behalf of users, not only responding to queries.

AI is also assisting customers in finding products more quickly and making better purchasing decisions. Internally, AI is assisting Amazon in placing stock better, forecasting demand, and hastening deliveries. The firm’s customer and service bots have also been enhanced with generative AI, resulting in cheaper and quicker service.

 

Job Cuts Likely as AI Takes Over Tasks

 

While Jassy commended the advantages of AI, he was also adamant that there would be some jobs that would disappear. “We will require fewer people performing some of the tasks that are performed today,” he asserted.

He went on to say that it’s difficult to pinpoint the exact number of jobs that will be lost, but the AI transition will ‘reduce our overall corporate workforce’ within the next several years. Amazon has already fired around 27,000 employees since 2022. It already reduced staffing in its books and devices divisions earlier this year.

 

Employees Told to Learn and Adapt

 

Jassy told employees to begin learning about AI so that they could remain relevant. He urged them to take part in interviews, utilize AI tools, and participate in team discussions so that they could discover new ways of doing things.

“While we go through this change together,” he said, “be inquisitive about AI and seek ways to accomplish more with fewer folks.”

Amazon’s aggressive investment in AI will assist in increasing its profit. This situation has also posed the question of how employees will be impacted. While new positions are promised by the company, the tone is unmistakable: change quickly, or fall behind.