Amazon CEO Hints at More Layoffs as AI Reshapes Company Structure

Amazon is preparing for further corporate workforce reductions as it intensifies its investment in artificial intelligence, CEO Andy Jassy revealed in a recent company-wide letter.

In the message, Jassy underscored AI’s growing role across Amazon’s business operations—from customer-facing services like Alexa and online shopping features to backend functions such as inventory management and customer service. Describing generative AI as a “once-in-a-lifetime” innovation, he highlighted its transformative power in enhancing efficiency, cutting costs, and accelerating product development.

Jassy pointed to advancements like Alexa+, Amazon’s smarter, next-gen personal assistant, and an AI-powered shopping tool that is helping tens of millions of customers make more informed decisions. Internally, AI is now optimizing Amazon’s fulfillment network, improving demand forecasting, and even redesigning product detail pages.

However, Jassy acknowledged the disruptive impact these advancements may have on the workforce. “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.”

While the exact scale of future layoffs remains unclear, the CEO’s remarks suggest a gradual shift in staffing needs, with some roles being phased out and others emerging in AI development and implementation.

Jassy encouraged employees to embrace the AI-driven transformation, urging them to attend workshops, experiment with new tools, and collaborate on ways to innovate faster with leaner teams.

The letter reflects Amazon’s broader strategic pivot as it races to lead in the AI revolution, signaling that efficiency and innovation—powered by technology—will define the company’s next chapter.