Amazon CEO Andy Jassy believes that as AI becomes central to the company"s operations, more and more employees will need to be laid off. The giant retailer has invested substantial funds in AI over the past few years to automate various in-office and warehouse operations.
In an interview with CNBC, Andy Jassy stated that with AI automating more tasks, fewer employees are needed to perform the same work. He described AI as "the most transformative technology in our lifetime," but also said that this technology will lead to the creation of other kinds of jobs.
"Like with every technical transformation, there will be fewer people doing some of the jobs that the technology actually starts to automate," Amazon"s CEO said. Jassy added that Amazon will hire more people in AI and robotics, as well as other technology sectors, over time.
Over 500 job postings by Amazon on LinkedIn over the past month contain the word "robotics" in the job title, which demonstrates the realtor"s focus on expanding robotic departments (via Business Insider).
Andy Jassy also seems to be a big believer in the power of AI agents. He said AI will prevent employees from doing "rote work" while "every single person gets to start every task at a more advanced starting spot."
Amazon began laying off staff in 2022 to make post-pandemic corrections, but the expansion of AI has put more Amazon employees at risk of losing their jobs.
In a memo to employees on June 17, Amazon"s CEO wrote that the company will reduce its corporate workforce over the next few years due to "efficiency gains from using AI extensively across the company." The latest data shows that Amazon has cut roughly 28,000 jobs since 2022.
While more staff should expect to lose their job at Amazon, the giant retailer continues to invest billions in AI data centers. Last month, Amazon announced plans to invest at least $20 billion in Pennsylvania for AI infrastructure.