Amazon seems to be soft-launching its subsequent spherical of layoffs. In a message to staff shared Tuesday, Amazon CEO Andy Jassy talked extremely of the corporate’s embrace of synthetic intelligence instruments throughout its firm, and mentioned that it’s going to in the end “scale back our complete company workforce as we get effectivity positive aspects” over time. That is just barely veiled company communicate for “prepare to get replaced.”
Jassy referred to as generative AI a “once-in-a-lifetime” know-how that may change the best way the corporate operates, and mentioned Amazon is already utilizing it in “just about each nook of the corporate.” According to Jassy, Amazon already has over 1,000 Generative AI companies and purposes in progress or constructed, and mentioned, “that’s a small fraction of what we are going to in the end construct.” So it’s clear the corporate is all in on AI. Amazon beforehand mentioned it could commit $100 billion to investing in AI applied sciences this 12 months.
As for people? Well, it appears Amazon shouldn’t be so dedicated to them long-term. Jassy instructed the corporate’s 1.5 million staff that generative AI will “change the best way our work is completed,” and mentioned that the corporate will in the end “want fewer individuals doing among the jobs which might be being achieved at this time, and extra individuals doing different kinds of jobs.”
The underlying message: you would possibly quickly be out of labor. “It’s exhausting to know precisely the place this nets out over time, however within the subsequent few years, we count on that it will scale back our complete company workforce as we get effectivity positive aspects from utilizing AI extensively throughout the corporate,” Jassy wrote.
The CEO did supply his staff, a few of whom are probably questioning simply how lengthy they’ll be employed, tips on how to probably survive the following spherical of layoffs (or, possibly extra probably, assist prepare their future replacements). “As we undergo this transformation collectively, be interested by AI, educate your self, attend workshops and take trainings, use and experiment with AI every time you may, take part in your crew’s brainstorms to determine tips on how to invent for our clients extra rapidly and expansively, and tips on how to get extra achieved with scrappier groups.”
Amazon has been within the technique of stripping its workforce right down to the bones in departments it appears to care much less about. The firm reduce about 100 individuals from its gadgets and companies crew earlier this 12 months, and across the similar quantity from its books division. Per CNBC, it has laid off about 27,000 individuals since 2022 and has its eyes on additional cuts.
It’s exhausting to have a look at Jassy’s AI-forward message as a lot else apart from an indicator that extra layoffs are simply across the nook. It’s potential the AI hype is only a cynical try to place itself as being an business chief when the true purpose is reducing salaries to spice up inventory value. It wouldn’t be the primary firm to attempt to go all-in on AI on the expense of human labor. Earlier this 12 months, Klarna introduced it was bringing again human customer support representatives after attempting to depart the duty to AI after discovering the outcomes aren’t nice and other people don’t actually like coping with AI brokers.
