More job cuts at Amazon? CEO Andy Jassy has a ‘subtle message’

Amazon CEO Andy Jassy has warned employees that AI will lead to workforce reductions, mostly in corporate job profiles.

A PwC report from early 2025 said it loud and clear. “75% of global CEOs believe generative AI will significantly transform their business within the next three years”. That forecast isn’t just theory any more, it’s happening in real time! And the case in point is none other than the e-commerce giant, Amazon.

Amazon CEO Andy Jassy encourages employees to stay curious about AI and upskill as he hints towards more layoffs. (Pexels)

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In a publicly posted memo addressed to employees, Amazon CEO Andy Jassy laid out what many had been fearing but silently anticipating. Jassy expressed that AI is no longer a future trend but is already reshaping how the company works, and it’s going to impact jobs in the corporate workforce in the process.

To be clear, the memo doesn’t signal an overnight wave of layoffs, but it does point toward a gradual, long-term reduction in white-collar roles. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” said Jassy in the memo.

He further added, “We’re also using Generative AI broadly across our internal operations. In our fulfilment network, we’re using AI to improve inventory placement, demand forecasting, and the efficiency of our robots—all of which have improved cost to serve and delivery speed. We’ve rebuilt our Customer Service Chatbot with GenAI, providing an even better experience than we’d had before. And, we’re assembling more intelligent and compelling product detail pages from leveraging GenAI”.

Amazon, which currently employs over 1.5 million people globally, has already laid off around 10,000 employees since 2022. About 3.5 lakh of its workforce holds corporate positions, which precisely seems like the segment AI will affect the most.

Jassy called generative AI a “once-in-a-lifetime technology,” citing how it’s already being used in “virtually every corner of the company.” From improving Alexa to enhancing internal tools, the goal is clear, Amazon wants leaner and smarter operations.

Around 500,000 sellers are already using Amazon’s AI tools to write product content, while advertisers are jumping on board too. Even the company’s internal customer support chatbot has been rebuilt using GenAI.

Jassy urged employees to stay ahead of the curve, learn, experiment, and adapt. “Attend training, be curious about AI, and help figure out how to invent faster for our customers,” he advised, hinting that those who evolve with the tech are more likely to stay relevant.