Seattle-based Amazon announces 'workforce reduction' due to AI

SEATTLE - Amazon representatives have announced plans to reduce their workforce amid an increased commitment to implementing AI services across the company.

The adoption of AI is expected to change the workforce dynamics, potentially reducing the corporate workforce while creating new job opportunities focused on strategic and innovative tasks, said the Amazon CEO Andy Jassy in a Tuesday press release. 

However, the CEO said that even though the shift in operations will create some new jobs, the company expects an overall decline in the number of employees.

What they're saying:

"It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company."

Dig deeper:

The move comes just over a year after the company closed its Tukwila warehouse, impacting 172 workers, and two years after a series of 2023 layoffs and return-to-work orders.

Amazon layoffs could continue through 2023

Amazon may not be finished with their layoffs. According to a letter CEO Andy Jassy sent employees, the layoffs could continue through 2023.

Amazon is reportedly investing extensively in Generative AI to "make customers lives better and easier." across their services such as Alexa+, AI shopping assistants, and advertising tools.

What's next:

Jassy says the company will leverage AI to improve internal operations, such as inventory placement, demand forecasting, and customer service, aiming to enhance efficiency and reduce costs. This will reduce the need for a physical workforce in some departments, according to Amazon.

Corporate employees in Seattle were ordered back to the South Lake Union offices at the start of 2025, leading to increased traffic frustrations among locals.

Seattle traffic ramps up as Amazon employees return to work

Tens of thousands of Amazon employees will return to work in Seattle for their first required in-person Monday shift in years. Now the traffic in Seattle is expected to seriously ramp up, especially in the South Lake Union neighborhood.

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