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Amazon to Shrink Corporate Staff as AI Use Grows

June 18, 2025
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CEO Jassy says efficiency gains from AI will reshape workforce

Amazon CEO Andy Jassy expects generative artificial intelligence to gradually reduce the company’s corporate workforce in the coming years, as the e-commerce and cloud giant accelerates its integration of AI technologies.

“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy told employees in a company-wide memo. He added that while it is difficult to predict exact numbers, widespread AI adoption will lead to notable efficiency gains and workforce shifts across Amazon.

Jassy noted that Amazon already has more than 1,000 generative AI services and applications developed or in progress, calling that number just a “small fraction” of what the company plans to build. He encouraged staff to embrace the transformation, advising them to engage with AI workshops, training, and experimentation as part of their daily workflow.

Massive AI and data center investments

The comments follow a series of major infrastructure announcements by Amazon. In 2024 and 2025, the company committed approximately $10 billion each to new data center campuses in Mississippi, Indiana, Ohio, and North Carolina. This month, Amazon pledged another $20 billion to build two large-scale data center complexes in Pennsylvania.

The surge in investment is aimed at expanding Amazon Web Services (AWS), which underpins its artificial intelligence capabilities and competes with Microsoft and Google in the cloud sector. AI and cloud computing are driving soaring demand for energy-intensive data centers, which require vast power supplies to support servers and cooling systems.

AI in products and partnerships

Amazon’s AI ambitions extend beyond infrastructure. The company has introduced AI-powered dubbing for select Prime Video content and launched a generative AI version of Alexa. In November, it invested an additional $4 billion in AI startup Anthropic. It has also partnered with Intel to produce custom AI chips for AWS, solidifying its long-term strategy in proprietary AI hardware.

Jassy emphasized that the company’s AI transformation is not just about automation but about reinventing how Amazon serves its customers. “As we go through this transformation together,” he wrote, “figure out how to get more done with scrappier teams.”