Amazon’s AI push reshapes its corporate structure and future workforce

WEB DESK: Amazon’s growing embrace of artificial intelligence is rapidly transforming not just its technology but the very structure of its workforce. As the company begins a new round of corporate restructuring this week, insiders say the changes go far beyond cost-cutting — signalling a deeper shift in how the retail and cloud giant plans to operate in an increasingly automated future.

Behind the headlines of possible job reductions, Amazon’s strategy reflects CEO Andy Jassy’s drive to build a leaner, faster, and more technology-driven company. From automating repetitive corporate tasks to cutting layers of management, the company appears to be reengineering itself for an era where AI tools play a central role in everyday decision-making.

The rise of AI inside Amazon

Jassy has made clear that artificial intelligence is now at the heart of Amazon’s long-term strategy. Earlier this year, he said AI-driven systems were already improving efficiency across logistics, retail, and cloud computing. Analysts say the latest restructuring wave likely reflects growing confidence that these systems can take over much of the routine work once done by humans.

“Amazon is moving from experimenting with AI to embedding it into its core operations,” said Sky Canaves, an eMarketer analyst. “The scale of automation now being deployed means the company is reorganising entire teams, not just trimming headcount.”

Amazon’s internal feedback system — an initiative designed to identify inefficiencies — has also produced over 450 process changes, many of which are now powered by machine learning models, according to company disclosures.

Bureaucracy out, speed in

Since taking the helm in 2021, Jassy has made cutting bureaucracy one of his top priorities. He has encouraged staff to flag redundant management layers and slow approval chains. The company even introduced an anonymous complaint channel to surface such issues, reportedly receiving over 1,500 submissions.

Those efforts appear to be shaping Amazon’s internal structure. Teams across its human resources unit, known as People Experience and Technology (PXT), and its cloud computing arm, Amazon Web Services (AWS), are undergoing reorganisation to streamline operations and speed up project delivery.

Cloud competition intensifies

Amazon’s cloud unit remains its biggest profit engine, generating $30.9 billion in sales last quarter. However, its growth of 17.5 percent lags behind rivals Microsoft Azure and Google Cloud, which are expanding far faster. Analysts say this has pushed Amazon to double down on efficiency, automation, and AI integration to stay competitive.

AWS is still recovering from a recent outage that disrupted major services like Snapchat and Venmo, exposing vulnerabilities in its infrastructure. The company has since been investing heavily in resilience and AI-powered monitoring systems.

Balancing automation and human work

Even as Amazon leans on automation, it continues to rely on human labour to power its massive logistics network. The company plans to hire 250,000 seasonal workers this holiday season — the same as last year — to handle surging customer demand.

Yet, the contrast between hiring warehouse workers and trimming corporate staff highlights the dual nature of Amazon’s transformation: scaling up where human hands are still essential, while cutting back where algorithms can take over.

Amazon shares closed 1.2 percent higher at $226.97 on Monday, as investors appeared to welcome signs of increased operational discipline. The company will release its third-quarter results on Thursday, with markets keen to see how far AI adoption has already reshaped its business.