Amazon CEO Andy Jassy announced that the company plans to decrease its corporate workforce as it adopts more generative AI tools.
“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs. 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,” Jassy said in a company memo on Tuesday.
He added that Amazon is utilizing AI to optimize inventory placement, enhance demand forecasting, and improve its robots, noting that this has resulted in lower costs and faster delivery speeds.
Amazon announced in February that it will spend $100 billion on capital expenditures, driven by investments in artificial intelligence, according to CNBC.
The company has reduced its workforce in recent years, having laid off over 27,000 employees since 2022, CNBC reported.
AI’s Influence At Amazon
Amazon has been leveraging AI in various ways. The company recently unveiled the Vulcan, its first robot with a sense of touch, which also includes an AI-powered sensor. Vulcan is being used to improve workplace efficiency, allowing employees to pick and store 75% of the items in the warehouses, AFROTECH™ reported.
Amazon has used generative AI for its shopping assistant and is using the tool for its customer service chatbot, as well as for advertising, which makes it “easier for brands to plan, onboard, create and optimize campaigns,” Jassy said in the memo.
Regarding the forthcoming changes the company will implement with its workforce, he told employees that they should be curious about AI and learn more about it through experimentation, attending workshops, and training.
“Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company,’ Jassy said in the memo. “There’s so much more to come with Generative AI. I’m energized by our progress, excited about our plans ahead, and looking forward to partnering with you all as we change what’s possible for our customers, partners, and how we work.”
