Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

Amazon expects to cut corporate jobs as it relies more on AI

by admin June 19, 2025
June 19, 2025
Amazon expects to cut corporate jobs as it relies more on AI

Amazon CEO Andy Jassy said Tuesday that the company expects artificial intelligence ‘will reduce our total corporate workforce as we get efficiency gains’ over time.

‘We will need fewer people doing some of the jobs that are being done today, and more people do other types of jobs,’ Jassy added in a memo to Amazon’s workforce.

The CEO of the country’s second-largest retailer and employer said Amazon is using generative AI ‘in virtually every corner of the company.’

Amazon employs more than 1.5 million people worldwide, according its most recent annual report.

This year, Amazon plans to spend $100 billion to expand AI services and data centers that power them, up from $83 billion last year.

Jassy said he believes so-called ‘AI agents’ will ‘change how we all work and live.’ While ‘many of these agents have yet to be built,’ he said, ‘they’re coming, and fast.’

He continued by saying that they will ‘change the scope and speed at which we can innovate for customers.’

Amazon currently has more than a thousand AI services and applications running inside the company or in progress of being built.

Jassy’s comments Tuesday will likely invoke fears that many corporate workers have had as artificial intelligence captures the eye of efficiency-minded executives across corporate America. A recent study from Bloomberg Intelligence said that AI could replace up to 200,000 banking jobs.

Amazon CEO Andy Jassy in New York on Feb. 26.Michael Nagle / Bloomberg via Getty Images

Artificial intelligence has also been shown to be effective at coding for software programs.

Cybersecurity firm Crowdstrike eliminted 5% of its workforce in May, saying that AI was driving ‘efficiencies across both the front and back office.’

Shopify CEO Tobi Lutke said managers at the e-commerce company will be expected to prove why they ‘cannot get what they want done using AI’ before asking for more headcount.

‘Having AI alongside the journey and increasingly doing not just the consultation, but also doing the work for our merchants is a mind-blowing step function change here,’ Lutke added.

Language learning firm Duolingo also recently said that it would replace contract workers with artificial intelligence. ‘We’ll gradually stop using contractors to do work that AI can handle,’ CEO Luis von Ahn wrote in a memo to Duolingo employees in May. ‘Headcount will only be given if a team cannot automate more of their work,’ von Ahn added.

The CEO of U.K. telecom giant BT said this week that plans to cut 40,000 jobs from the company’s workforce over the next 10 years ‘did not reflect the full potential of AI.’

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
DOJ seizes record $225 million in crypto tied to global ‘pig butchering’ scams
next post
Streaming overtakes cable and broadcast as the most-watched form of TV

Related Posts

Nvidia loses nearly $600 billion in market value...

January 28, 2025

CVS Health to pull decongestants with phenylephrine off...

October 20, 2023

Money worries push some shoppers to tighten budgets...

November 25, 2023

FCC is investigating Disney and ABC for DEI...

March 29, 2025

Grubhub lays off 15% of corporate workforce, or...

June 14, 2023

Ontario to remove U.S. alcohol from shelves after...

February 4, 2025

T-Mobile to acquire most of U.S. Cellular in...

May 30, 2024

Microsoft laying off about 9,000 employees in latest...

July 3, 2025

UAW strike begins at Mercedes-Benz supplier in Alabama...

September 24, 2023

Maker of Hershey’s, Jeni’s, and Friendly’s ice cream...

June 26, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • How I Triple My Returns With 3x Leveraged ETFs!

    • How to Find Compelling Charts in Every Sector

    • EVs Now Emit 73 percent Less Than Gasoline Cars Over Their Lifetime, Says ICCT Study

    • Cygnus Metals Limited: Issue of Performance Rights

    • FPX Nickel Announces Share-Based Compensation Grant

    • Blue Lagoon Resources Officially Opens Dome Mountain Gold Mine in British Columbia

    Categories

    • Business (1,287)
    • Investing (2,662)
    • Politics (3,699)
    • Stocks (1,711)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved