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Amazon has laid off at least hundreds of employees in its Amazon Web Services (AWS) division, following a warning from CEO Andy Jassy about workforce reductions due to the rise of generative AI. This move aligns with trends in the tech industry, where companies are increasingly automating tasks to reduce costs.
Amazon is preparing to replace more than half a million jobs with robots as part of a strategy to automate 75% of its operations. Internal documents indicate that this shift marks a significant transformation in the company's labor force, which has already heavily relied on technology in its operations.
Amazon CEO Andy Jassy announced that the company's corporate workforce will decline as generative AI tools are integrated, leading to fewer employees in some roles and a shift towards different job types. The memo follows significant layoffs at Amazon and highlights the company's commitment to leveraging AI for efficiency across various operations. Jassy emphasized the need for employees to adapt by learning to utilize AI effectively.
Amazon is increasingly deploying robots like Sparrow, Cardinal, and Proteus in its warehouses to enhance automation and reduce reliance on human labor. These robotic systems are designed to streamline operations by efficiently handling tasks such as moving products and organizing shipments, reflecting the company's strategy to minimize hiring in the future.