Kuala Lumpur: Amazon’s management announced that artificial intelligence (AI) advancements are expected to decrease the number of office workers needed at the global online retail giant, as reported by German news agency (dpa).

According to BERNAMA News Agency, Amazon’s chief executive Andy Jassy informed employees via email that the company anticipates a shift in workforce requirements due to AI. He stated that while fewer people will be required for certain current roles, there will be an increased need for other types of jobs. Jassy acknowledged the uncertainty in predicting the overall workforce changes but suggested that AI-driven efficiency gains would likely result in a reduction of office workers in the coming years.

Amazon currently employs approximately 1.5 million people worldwide, with around 350,000 of them in office positions. The Wall Street Journal highlighted that, unlike the significant layoffs witnessed in 2022 and 2023, the company does not foresee similar large-scale reductions in the near future. However, it plans not to refill vacant positions, though layoffs are not entirely off the table, according to insiders.

A focal point for Amazon is the development of AI agents, which are software programs capable of independently executing various tasks. These tasks include summarizing information, writing software, translating languages, and automating routine procedures. Jassy emphasized that these agents will act as teammates, assisting employees at different stages of their work, and encouraged staff to engage with AI tools actively.

The implications of AI on employment have been a topic of concern for years. Recently, Spotify, a leader in music streaming, instituted a policy where teams requesting additional staff must first demonstrate that AI cannot fulfill those needs. Similarly, Duolingo, the language-learning app, plans to replace some external workers with AI solutions gradually.