Amazon CEO Andy Jassy Warns Of AI-Driven Workforce Reduction — AMZN 'Won't Keep Everyone,' Says Ex-VP Ethan Evans In Warning To Employees
Amazon CEO Andy Jassy has warned that AI advancements will lead to workforce reductions, emphasizing that the company will not retain all employees. Former VP Ethan Evans echoed this sentiment, urging workers to adapt and enhance skills that AI cannot replace. Jassy's announcement highlighted Amazon's significant investment in AI, with over 1,000 services in development and a commitment of over $100 billion to AI infrastructure. Employee reactions have been mixed, with concerns about job security amid hiring freezes in retail and expansions in AI capabilities.
Amazon.com Inc. AMZN CEO Andy Jassy‘s recent announcement that artificial intelligence will shrink the company’s corporate workforce has prompted a stark warning from former Amazon Vice President Ethan Evans, who says employees must adapt or face elimination.
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What Happened: Evans wrote on X on Wednesday that Jassy is delivering “a really simple truth” to give current Amazon employees time to prepare for job competition driven by AI efficiency gains. “Amazon, even with new projects, does not expect to keep everyone,” Evans stated, adding that the company will retain “the most productive, most valuable people.”
The former VP, who worked directly with Jassy, characterized the CEO’s Tuesday blog post as firing “the starting gun” on an internal race where employees must prove their AI-resistant value or risk layoffs.
Evans urged workers to identify skills that AI cannot easily replace and invest in capabilities where AI enhances rather than replaces human performance.
Why It Matters: Jassy’s announcement last week revealed Amazon has over 1,000 generative AI services and applications in development. The company’s AI-driven Alexa+ serves tens of millions of customers globally, while more than 50,000 advertisers used AI capabilities in the first quarter alone.
Amazon has committed over $100 billion to AI infrastructure investments, including $13 billion for Australia’s data center expansion through 2029.
Internal employee reactions viewed by Business Insider showed mixed responses across Slack channels. “There is nothing more motivating on a Tuesday than reading that your job will be replaced by AI in a few years,” one employee wrote. Others questioned whether senior leadership would face similar cuts, noting Amazon’s S-team expansion under Jassy.
The workforce warning comes as Amazon froze retail hiring budgets this year while expanding AI capabilities. Jassy previously called AI investments a “once-in-a-lifetime reinvention of everything we know,” emphasizing substantial capital requirements for AI chips and data centers.
Evans warned that attacking leadership for delivering “unpleasant truth” only encourages delays that lead to “brutal surprise down the road.” He advised employees to start transitioning skills immediately, stating, “Get started or get hurt.”
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