Amazon Set To Slash Jobs As Artificial Intelligence Takes Over Corporate Roles

In a significant move that signals the growing impact of artificial intelligence on the workforce, Amazon’s chief executive Andy Jassy has announced plans to reduce the company’s corporate workforce as AI technology increasingly automates white-collar positions.

The retail giant, which employs more than 1.5 million full-time and part-time staff, is actively implementing generative AI across its internal operations. Jassy’s message to employees highlighted the transformative nature of this technological shift, indicating that whilst some existing roles would become redundant, new positions would emerge in different areas.

The company’s AI integration strategy spans multiple operational facets, including inventory optimisation, forecasting improvements in its fulfilment network, enhanced customer service chatbots, and refined product detail pages. This comprehensive approach reflects Amazon’s commitment to leveraging AI for operational efficiency.

Industry analysts, including Gil Luria from DA Davidson, note that this move aligns with broader trends in the technology sector. The immediate impact is particularly evident in software development roles, where hiring has notably decelerated. Goldman Sachs projects global AI investment to reach £200 billion this year, potentially contributing 2 per cent to US GDP by 2030.

This strategic shift mirrors similar moves by other tech giants. Microsoft has emphasised AI’s productivity benefits while implementing staff reductions, and Google has reportedly decreased its workforce by hundreds in the past year. British telecommunications leader BT has announced plans to replace 10,000 positions with AI by 2030.

The transformation underway at Amazon exemplifies the broader technological revolution in corporate operations, where AI is increasingly assuming roles traditionally performed by human workers. While this transition promises enhanced efficiency and productivity, it also signals a fundamental restructuring of the corporate workforce landscape.