Amazon’s CEO, Andy Jassy, made headlines in June 2025 with a memo announcing that the company’s corporate workforce will shrink in the coming years due to the rise of generative artificial intelligence (AI). This news has shaken Amazon’s 1.56 million employees worldwide, signalling a major shift in how the company operates. Jassy’s plan to use AI to make Amazon more efficient has sparked discussions about job security, innovation, and the future of work, especially in India, where Amazon has a strong presence.
Why Amazon is Reducing Its Workforce
1. AI is Changing How Amazon Works
Andy Jassy believes generative AI is a groundbreaking technology that will transform Amazon. AI is already improving tools like Alexa+ and powering robots in warehouses. It can handle tasks like writing code, analyzing data, and answering customer queries faster than humans. For example, Amazon’s AI coding assistant has saved programmers thousands of hours by speeding up software updates. This means fewer people are needed for repetitive jobs, leading to a smaller workforce.
2. Focus on Saving Money and Working Smarter
Since becoming CEO in 2021 after Jeff Bezos, Jassy has focused on making Amazon more efficient. He introduced a concept called “cost to serve” to cut expenses in areas like delivery and customer service. To achieve this, Amazon is reducing middle managers and limiting hiring in some departments, like retail. This approach builds on Jassy’s goal to run Amazon like a lean, fast-moving startup, which has already led to over 27,000 job cuts since 2022.
3. Following a Global Trend in AI Use
Amazon isn’t the only company using AI to change its workforce. Other tech giants like Shopify, Klarna, and Microsoft are also cutting jobs as they invest in AI. A January 2025 survey by the World Economic Forum found that 41% of companies plan to reduce staff due to automation. Jassy’s announcement shows Amazon is part of this global shift, where AI is taking over routine tasks, requiring fewer employees.
How Employees Are Reacting
Jassy’s memo, shared on June 17, 2025, caused a strong reaction among Amazon’s corporate workers. Many expressed frustration and worry on internal Slack channels, criticizing the focus on cost-cutting over innovation and customer service. Some employees feel anxious about more layoffs, while others believe AI should support workers, not replace them. There’s also concern that senior leaders, like Amazon’s growing S-team, might not face the same job cuts as regular employees.
In India, where Amazon has thousands of employees in cities like Bengaluru and Hyderabad, the news has raised fears about job security, especially for software engineers and support staff. With AI writing up to 30% of code at companies like Meta and Microsoft, entry-level tech jobs in India are at risk.
New Opportunities Despite the Cuts
Jassy highlighted that AI will create new jobs in fields like robotics and AI development. Amazon is currently hiring for 500 robotics roles, showing a need for workers with specialized skills. Jassy encouraged employees to learn AI through company workshops and by using AI tools to stay competitive. In India, where tech skills are in high demand, this is a chance for workers to learn AI and machine learning to secure their careers.
What This Means for India’s Tech Industry
India is a major hub for Amazon, with large offices in Bengaluru and Hyderabad. Jassy’s plan to create smaller, more efficient teams could slow hiring in these locations. However, it also opens opportunities for Indian workers skilled in AI, cloud computing, and data science. As AI reshapes the global tech industry, India’s IT workforce, which employs millions, must adapt by learning new skills to stay relevant.
What’s Next for Amazon?
Amazon is investing $100 billion in AI services and data centers in 2025 to stay ahead in the AI race. Projects like Alexa+ and AI-powered shopping tools are improving customer experiences, while warehouse robots are speeding up deliveries. However, employees are unsure about which jobs will be cut and when. Experts believe Amazon may reduce its workforce gradually by hiring fewer people and letting natural turnover happen, rather than large-scale layoffs. Still, the uncertainty is causing concern.
Conclusion
Andy Jassy’s announcement is a clear signal that AI is changing the way Amazon works, leading to a smaller workforce but also new opportunities. While the news has caused worry, especially in India’s tech hubs, it’s also a call for workers to learn AI skills to stay competitive. As Amazon invests heavily in AI, it aims to balance efficiency with its focus on customers. For India’s tech professionals, this is a chance to adapt and grow in an AI-driven future.
Follow our website for more updates on Amazon’s AI plans and their impact on India’s tech industry.
Last Updated on: Sunday, July 6, 2025 4:30 pm by K Nikhil | Published by: K Nikhil on Sunday, July 6, 2025 4:30 pm | News Categories: Technology
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