New Delhi: As Amazon continues its deep transformation into an AI-first enterprise, CEO Andy Jassy has made it clear that the layoffs aren’t over. In fact, the wave of job cuts may intensify as generative AI tools begin to replace traditional corporate functions at scale.
In his annual letter to shareholders and a recent internal memo, Jassy didn’t mince words. “We will need fewer people doing some of the jobs that are being done today,” he wrote. “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.”
Compared to earlier layoff cycles, which were frequently ascribed to post-pandemic cost recalibration, the statement represents a substantial change in tone. Amazon has now publicly linked job cuts to an operational revamp powered by AI, demonstrating that this is a strategic move rather than a reactive one.
Since late 2022, Amazon has already eliminated around 27,000 positions. With estimated yearly savings of up to $3.6 billion, the corporation reportedly cut 14,000 managerial positions in early 2025 alone, accounting for 13% of its global corporate leadership.
AI is also increasing robot pathing, delivery speeds, and inventory forecasting in warehousing and fulfilment while lowering the need for human intervention.
“Agents will let you tell them what you want… and do things like scour the web, write code, find anomalies, highlight insights… and automate a lot of tasks that consume our time,” said Jassy.
“We’re going to keep pushing to operate like the world’s largest startup, customer-obsessed, inventive, fast-moving, lean, scrappy,” Jassy emphasised, indicating that AI will drive both innovation and workforce downsizing in tandem.
Also Read –
After 6,000 Global Cuts, Microsoft Slashes Hundreds More Roles
