Thursday, June 19, 2025
After eliminating nearly 27,000 jobs in 2023, Amazon is preparing for another round of layoffs. This time, the job cuts stem from the rapid growth and efficiency of AI.
"As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," CEO Andy Jassy wrote in a memo to employees.
The memo didn't specify the departments that would be impacted, but it highlighted AI agents as key to the company's future. They can engage in deep research, write code, and "change the scope and speed at which we can innovate for customers," Jassy said.
Currently, Amazon has over 1,000 generative AI services and apps in progress. In the future, the company hopes to use agents that can act as "teammates that we can call on at various stages of our work," Jassy added.
The Amazon executive didn't provide a timeline for the layoffs. He, however, stated that efficiency gains from AI will reduce the company's total corporate workforce in the next few years.
Jobs of some warehouse workers and delivery agents may also be at risk. The company started testing humanoid robots at a Seattle warehouse in 2023. These robots could move, grasp, and handle items just like human workers.
More recently, the e-commerce giant was rumored to be testing similar robots for doorstep delivery. The robots are expected to hop on the back of a Rivian van and step out to drop off packages. The Prime Air drone service, on the other hand, has already begun delivering iPhones, Galaxy phones, AirPods, and more in less than 60 minutes in eligible areas.
In April, Duolingo had also announced AI-driven job cuts. CEO Luis von Ahn wanted to make the language learning platform an AI-first company and gradually stop using contractors for work AI can handle. However, after facing backlash from users, von Ahn backtracked on his plans, stating, "I do not see AI as replacing what our employees do."
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