Amazon targets 600K job cuts through AI automation, NYT reports

Amazon plans to use artificial intelligence and robotics to eliminate as many as 600,000 jobs across its workforce, according to a new investigative report by The New York Times. The automation initiative represents one of the largest potential job displacement scenarios in corporate America, as the e-commerce giant seeks to reduce labor costs through technological advancement.

What you should know: Amazon is currently the second-largest employer in the United States behind Walmart, making this potential job reduction significant for the broader labor market.

• CEO Andrew Jassy has already begun preparing white-collar employees for AI integration, urging staff to become familiar with AI agents earlier this year.
• The company’s automation plans target both warehouse operations through robotics and office functions through AI agents.

Company response: Amazon disputed the characterization of leaked documents suggesting widespread job cuts.

• “Leaked documents often paint an incomplete and misleading picture of our plans, and that’s the case here,” an Amazon spokesperson told the New York Post.
• The company has not provided specific details about which positions might be affected or the timeline for implementation.

The big picture: This development highlights the accelerating impact of AI and robotics on both blue-collar and white-collar employment sectors.

• Traditional warehouse and logistics jobs face automation through advanced robotics systems.
• Knowledge workers are simultaneously encountering AI agents capable of handling administrative and analytical tasks.
• The scale of Amazon’s potential workforce reduction could signal broader industry trends toward automation-driven cost savings.

Why this matters: Amazon’s automation strategy could establish a precedent for how large employers integrate AI and robotics, potentially influencing labor practices across multiple industries and reshaping discussions about technological displacement in the American workforce.