Amazon CEO Andy Jassy recently told employees that AI will lead to a reduction in the company’s workforce as it becomes “scrappier.” This move has sparked concerns among management commentators, who worry that other companies may follow suit and openly discuss AI-related job losses.
The comments from Jassy have been described as “culture modeling,” where big companies like Amazon share their transparency on AI with smaller businesses. However, some experts believe this could lead to a greater emphasis on laying off workers in favor of automation.
Klarna CEO Sebastian Siemiatkowski has already stopped hiring new employees due to concerns that AI can handle most tasks. Shopify’s Tobi Lütke has also adopted an “AI usage is now a baseline expectation” approach, where managers must prove that AI cannot do a job before making a hire.
While some experts welcome the openness on AI, others caution against linking layoffs with automation. Thomas Roulet, professor of organisational sociology and leadership at the University of Cambridge, says companies often use AI as an excuse to downsize employees, rather than considering how to replace them with new skills.
Peter Cappelli, a professor of management at The Wharton School, notes that replacing employees with AI tools is more difficult than initially thought. His views echo those of Roulet, who believes many companies are rushing into workforce reductions before they consider the implications of introducing AI.
The move by Amazon and other CEOs to openly discuss AI-related job losses may lead to a greater emphasis on retraining programs and staff support, or risk losing valuable talent.
Source: https://www.businessinsider.com/ai-layoffs-jobs-andy-jassy-amazon-honesty-workers-2025-6