Amazon chief executive Andy Jassy said artificial intelligence will lead to a significant reduction in the company’s corporate workforce, in one of the strongest admissions yet from a major tech leader that AI will directly replace jobs.

In a memo to staff this week, Jassy said Amazon is rolling out AI across “virtually every corner” of its operations, from logistics to advertising and software development.

As this adoption scales, he expects “fewer people doing some of the jobs that are being done today.”

“It’s hard to know exactly where this nets out over time,” he said, “but in the next few years, we expect this will reduce our total corporate workforce.”

Amazon, which employs more than 1.5 million people globally, is spending over US$100 billion this year to expand its AI infrastructure. The company already has over 1,000 generative AI applications in use or in development, with half a million sellers and 50,000 advertisers leveraging its tools.

Amazon Fulfillment Centre in Kemps Creek,Western Sydney.

While Big Tech leaders have largely avoided linking AI investment to job cuts, Jassy’s comments break that trend. They follow similar moves by Microsoft and other firms, which have laid off staff despite record AI-driven profits.

In Australia, the warning comes amid a broader debate around AI’s impact on jobs, with companies like Telstra and Commonwealth Bank forecasting smaller workforces by decade’s end.

Local tech workers at firms including Canva, which laid off 10 of its 12 technical writers in an AI push, are reportedly exploring unionisation in response.

Jassy urged Amazon staff to upskill quickly: “Be curious about AI. Educate yourself… Those who embrace this change will be well-positioned to have high impact and help us reinvent the company.”