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Amazon CEO Andy Jassy is the latest tech leader to candidly address the disruptive impact of artificial intelligence on the workforce, noting that automation powered by generative AI will inevitably lead to fewer people performing tasks that machines can handle more efficiently.

Speaking to CNBC’s Jim Cramer on Monday, Jassy said that as AI systems increasingly automate routine work, certain roles within the company will shrink—but new jobs will emerge to replace them.

"Like with every technical transformation, there will be fewer people doing some of the jobs that the technology actually starts to automate," Jassy said. “But there’s going to be other jobs.”

AI-Driven Workforce Reshaping

Jassy emphasized that while some positions will disappear as Amazon deploys more AI tools, the company will continue hiring in strategic areas such as artificial intelligence, robotics, and machine learning. “AI will free employees from rote work and make all our jobs more interesting,” he added, pointing out that the technology will allow teams to build better products faster.

Earlier this month, Jassy acknowledged in an internal memo that Amazon’s overall workforce will likely shrink over the next few years due to ongoing advances in AI and automation. While the long-term impact remains difficult to predict, he stated that the company expects to achieve greater efficiency as it leans into AI-powered tools.

Amazon has already cut more than 27,000 jobs since 2022, with recent layoffs concentrated in retail and device units. These cuts are part of a broader trend among tech giants trimming roles amid economic uncertainty and shifting focus toward more AI-centric business models.

Industry-Wide Trend Toward AI Efficiency

Amazon’s approach mirrors what’s happening across Silicon Valley. Salesforce CEO Marc Benioff recently revealed that AI now handles 30% to 50% of all work done at the enterprise software company. Similarly, Klarna’s CEO said in May that AI adoption has contributed to a 40% reduction in headcount, aided by natural attrition.

Shopify and Microsoft have also encouraged their employees to incorporate generative AI into daily operations, signaling a broader shift where software agents and automation tools play a central role in business workflows.

These changes reflect the growing belief that AI is not just a productivity booster—but a transformative force reshaping job roles, workflows, and organizational structures.

AI Investment and Market Reaction

While Amazon is positioning itself as a leader in AI adoption, its stock performance has lagged behind some of its Big Tech peers. Amazon shares are flat year-to-date, underperforming the Nasdaq Composite, which is up 5.5%. The company’s stock remains about 10% below its all-time high set in February.

Meanwhile, companies like Meta, Microsoft, and Nvidia—all with aggressive AI investment strategies—are trading near record highs, reflecting investor confidence in their ability to monetize AI technologies in the near term.

Despite the stock’s relative underperformance, Amazon continues to make significant investments in AI infrastructure, from enhancing its AWS cloud capabilities to integrating AI more deeply into logistics, advertising, and customer experience platforms.

The Road Ahead

Jassy’s remarks offer a nuanced take on AI’s dual impact: displacing traditional roles while unlocking new avenues for innovation and productivity. “It’s not about eliminating people, it’s about elevating the kind of work they do,” he said.

As the AI revolution unfolds, Amazon—and the broader tech sector—will need to strike a careful balance between automation-driven efficiency and workforce reinvention. While fewer people may be needed for some jobs, the demand for AI-savvy talent is only expected to grow.

For companies, workers, and policymakers alike, the message is clear: the future of work is already being rewritten by artificial intelligence.