Amazon CEO says AI agents will reduce corporate workforce as company automates tasks

Amazon CEO Andy Jassy announced in a company memo that AI agents will soon reduce the company’s corporate workforce, as the e-commerce giant invests heavily in generative AI technology to automate workplace tasks. The announcement signals a major shift for the world’s second-largest private employer, which currently has approximately 1.5 million employees worldwide, and reflects broader industry trends toward AI-driven workforce transformation.

What you should know: Amazon plans to leverage AI agents to handle routine tasks while repositioning human workers toward more strategic roles.

• “As we roll out more generative AI and agents, it should change the way our work is done,” Jassy stated in the memo made public Tuesday.
• The CEO expects the company will “need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”
• This transition will “reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”

The big picture: Amazon is “investing quite expansively” in generative AI technology, with ambitious plans for rapid deployment across the organization.

• The company currently has 1,000 generative AI services and applications either in development or already built, which Jassy described as a “small fraction” of what Amazon ultimately plans to create.
• “Many of these agents have yet to be built, but make no mistake, they’re coming, and coming fast,” the CEO stated.

How it works: Amazon’s AI integration strategy focuses on automating tedious tasks to free up human workers for creative and strategic work.

• “Agents will allow us to start almost everything from a more advanced starting point,” Jassy explained.
• Workers will be able to “focus less on rote work and more on thinking strategically about how to improve customer experiences and invent new ones.”

In plain English: Think of AI agents as digital assistants that can handle repetitive office tasks like scheduling meetings, processing paperwork, or analyzing data—similar to how a very advanced version of Siri or Alexa might help you manage your daily tasks, but designed for workplace responsibilities.

Key details: Amazon has been building AI capabilities across its ecosystem since 2014, starting with the Echo smart speaker and Alexa virtual assistant.

• In February, the company announced Alexa+, a new version described as “more conversational, smarter, personalized.”
• AI features now appear throughout Amazon’s e-commerce platform through tools like “Buy for Me,” which allows customers to ask a shopping assistant to make purchases, and “Recommended Size,” which predicts clothing sizes based on past purchases.
• Amazon’s AI shopping assistant is used by tens of millions of customers, according to Jassy.

What employees are saying: The AI push has generated mixed reactions from Amazon’s white-collar workforce.

• Software engineers interviewed by the New York Times described an intensified work environment where they’re pushed to use AI to increase productivity and meet higher output goals.
• These engineers characterized their jobs as becoming “more routine, less thoughtful and, crucially, much faster paced.”

Market reaction: Amazon shares dipped slightly following the announcement, down 0.4% as of 3:45 p.m. EST on Tuesday.

Recent context: The workforce reduction announcement comes after Amazon cut 100 jobs in its devices and services unit in May, according to a company spokesperson.