Amazon CEO Andy Jassy has announced that the company expects to need fewer office employees in the coming years, largely due to the increasing use of artificial intelligence. As Amazon pushes forward with the development of so-called AI agents, significant shifts in its workforce structure are anticipated.
In a recent email to employees, Jassy explained that while the future of headcount is difficult to predict precisely, it’s clear that the rise of AI will reduce the need for traditional office roles. “We’ll need fewer people doing the types of jobs we see today—and more people focused on new kinds of work,” Jassy wrote.
AI Drives Operational Changes
Amazon, the world’s largest online retailer, is betting heavily on AI-powered software tools that can perform tasks independently. These AI agents are capable of summarizing data from multiple sources, writing software code, translating languages, and automating a wide range of time-consuming activities.
According to Jassy, these agents are not just support tools—they will become integral collaborators. “Agents will be team members we rely on at different stages of our work,” he told employees, encouraging them to experiment with AI whenever possible.
Although it’s too early to gauge the full impact, the company believes that AI-driven efficiency will lead to fewer office-based roles over the next several years. Currently, Amazon employs around 1.5 million people globally, including approximately 350,000 office workers across various departments.
No Mass Layoffs for Now, But Cuts Not Ruled Out
Despite the shift in workforce needs, Amazon does not foresee another wave of mass layoffs like those seen in 2022 and 2023. According to a report by The Wall Street Journal, the company intends to gradually reduce headcount by leaving vacated positions unfilled rather than initiating large-scale job cuts. However, the possibility of targeted layoffs has not been completely dismissed, sources familiar with the matter stated.
This strategic shift reflects a broader trend among major tech companies. For instance, Spotify recently announced that teams requesting additional staff must first demonstrate that AI tools cannot complete the tasks in question. Similarly, Duolingo, the language learning app, is actively working to replace some external staff with AI.
AI’s Growing Role in Reshaping Employment
The discussion around how AI will reshape the job market has been ongoing for years. But Amazon’s move adds weight to predictions that large corporations will increasingly lean on AI not just for innovation, but also for cutting costs and streamlining operations.
By doubling down on AI agents, Amazon is setting the stage for a transformation in how work is distributed, performed, and supported within its global offices. While this may lead to fewer conventional roles, it also opens doors for employees to develop new skills aligned with future tech-driven demands.
