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Amazon has issued a stark warning to its white-collar employees, stating that their jobs are at risk due to advancements in artificial intelligence (AI) in the coming years. In a memo sent out by Andy Jassy, the chief executive of the ecommerce giant, employees were informed that AI technology is being integrated across the company’s operations, particularly in its logistics network, with the aim of reducing costs.
Jassy emphasized that as Amazon increases its use of AI, job losses are inevitable. He stated, “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs. 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.”
This announcement comes at a time when Amazon and other major tech companies are under pressure from investors to demonstrate the efficiency gains resulting from their substantial investments in AI. Additionally, the company is facing challenges from the unpredictable trade policies of the Trump administration, leading to a slight decline in Amazon’s shares this year.
With a commitment to invest approximately $100bn in the current fiscal year, Amazon is heavily focused on AI infrastructure. The company is in a race against competitors like Google and Microsoft to lead the AI revolution and drive growth in its profitable Amazon Web Services division.
Jassy had previously mentioned the company’s efforts to streamline operations by reducing bureaucracy and adopting a flatter organizational structure with fewer middle managers. In recent years, Amazon has eliminated thousands of roles in various rounds of job cuts, with a particular focus on trimming positions within Amazon Web Services.
While tech companies have generally been hesitant to acknowledge the potential job cuts resulting from AI implementation, Microsoft made headlines earlier this year when it laid off 3% of its global workforce, with software engineers bearing the brunt of the cuts. Microsoft CEO Satya Nadella has highlighted AI’s capability to automate tasks traditionally performed by humans, such as writing code.
Despite the growing influence of AI in the workplace, Microsoft maintains that the recent job cuts were not directly linked to advancements in artificial intelligence technology.
In conclusion, as AI continues to reshape industries and automate tasks, it is essential for employees to stay informed about the implications of these advancements. By signing up for updates on artificial intelligence through platforms like myFT Digest, individuals can stay ahead of the curve and prepare for the changing landscape of work in the digital age.
