Amazon CEO Andy Jassy has come under fire from employees after a company-wide memo acknowledged that artificial intelligence (AI) will lead to a reduction in corporate workforce over the coming years.
The internal communication, sent on June 17, 2025, emphasized the company’s aggressive push toward AI-driven efficiency, but it also ignited a wave of criticism across internal Slack channels, with employees expressing fear, frustration, and skepticism about the company’s direction and leadership.
Internal Memo by Amazon CEO: Efficiency Gains, Fewer Jobs
In his message, Andy stated that generative AI and automation tools will fundamentally transform how work is done at Amazon.
He wrote, “We will need fewer people doing some of the jobs that are being done today and more people doing other types of jobs.”
He described AI as a once-in-a-generation technology that will reshape industries and enable Amazon to innovate faster.
The company is currently developing over 1,000 generative AI services, including the next-generation Alexa+ assistant, AI-powered shopping tools, and internal automation systems.
Amazon Employee Reactions: Sarcasm, Concern, and Critique
The memo triggered immediate backlash.
One employee sarcastically wrote in a Slack channel, “There is nothing more motivating on a Tuesday than reading that your job will be replaced by AI in a few years”.
Others criticized the lack of empathy in the communication and questioned whether senior leadership would be held to the same standards.
Some employees expressed concern about Amazon’s growing reliance on AI systems.
They warned that these tools are not always reliable and could lead to real-world consequences if deployed without proper oversight.
One employee remarked, “He, as the CEO, has shown he can deliver on cost-cutting and not the other aspects of business success”.
AI Strategy: Innovation or Displacement?
Andy painted a future where AI agents perform complex tasks across industries—from research and coding to shopping and logistics.
He argued that this transformation would reduce the need for employees to focus on rote, repetitive tasks.
Instead, they could shift their attention to strategic thinking and enhancing customer experience innovation.
However, many employees pushed back against the framing of AI as a replacement rather than a collaborative tool.
Some suggested that AI should be positioned as a productivity partner, not a justification for downsizing.
Broader Context: Hiring Freeze and Workforce Anxiety
The controversy comes amid broader workforce shifts at Amazon.
Earlier this month, the company froze its hiring budget for the retail division for the rest of the year.
Amazon employs over 1.5 million people globally, including 350,000 corporate staff.
The memo has heightened concerns about job security and organizational transparency among the workforce.
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