Amazon CEO Andy Jassy Signals Workforce Reduction as AI Automates Routine Jobs

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Amazon is preparing to reduce its total corporate workforce over the next few years due to the rapid adoption of generative AI and automation, CEO Andy Jassy said in an internal note on Tuesday. The company expects that AI-driven efficiencies will reshape job roles, decreasing demand for some routine tasks while increasing demand for others.

Amazon employed more than 1.5 million full-time and part-time workers by the end of 2024, alongside temporary and contract staff. Jassy highlighted the company’s ongoing use of AI to optimize inventory management, improve forecasting, upgrade customer service chatbots, and enhance product detail pages.

“As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said.

Industry analysts note that this trend reflects a broader shift across the tech sector. Gil Luria of D.A. Davidson commented that AI’s rapid productivity gains are leading to slower hiring, particularly in software development roles.

Other major tech firms like Microsoft and Google have also emphasized AI’s role in boosting productivity while concurrently reducing headcount through layoffs.

While AI is expected to reshape the workforce rather than cause mass unemployment, many roles will evolve significantly in the coming years as automation accelerates.

Greek Retailers Call on EU to Accelerate Fee on Low-Value E-Commerce Parcels

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Greek retailers have urged the European Union to implement earlier than planned a €2 ($2.30) handling fee on low-value e-commerce packages entering the bloc, according to a letter reviewed by Reuters.

The EU had announced in May plans to end the duty-free treatment for consignments valued at €150 or less and impose the new fee starting in 2028, aiming to address the surge of online goods imports, primarily from Asia.

In the letter addressed to EU Trade Commissioner Maros Sefcovic, Stavros Kafounis, president of the Hellenic Confederation of Commerce, requested the fee be applied no later than 2026.

EU customs handled around 4.6 billion low-value parcels in 2024, with 91% originating from China, a figure that doubled from 2023. Approximately 20% of Greek e-commerce sales revenue goes to Chinese platforms, a share expected to grow sharply in the coming years.

Kafounis emphasized that the rapid expansion of major Chinese e-commerce platforms has distorted fair competition within the EU retail market.

Under the proposal, the €2 fee would be charged to online retailers rather than consumers. The measure still requires approval from EU member states and the European Parliament.

Elon Musk’s X Sues New York Over Social Media Hate Speech Disclosure Law

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Elon Musk’s social media company, X Corp, filed a lawsuit on Tuesday challenging the constitutionality of New York’s Stop Hiding Hate Act, which mandates social media platforms to publicly disclose how they monitor and manage hate speech, extremism, disinformation, harassment, and foreign political interference.

X argues the law violates the First Amendment and state constitutional rights by forcing the company to reveal “highly sensitive and controversial speech” that New York officials might find objectionable, potentially exposing the company to lawsuits and heavy fines. The law imposes civil penalties of up to $15,000 per violation per day.

The lawsuit, filed in Manhattan federal court, states that deciding what speech is acceptable is a complex issue that “engenders considerable debate among reasonable people,” and that regulating this is not a role for government authorities.

X cited a letter from the law’s sponsors, state Senator Brad Hoylman-Sigal and Assemblymember Grace Lee, accusing Musk and X of having a “disturbing record” on content moderation that allegedly threatens democratic foundations.

New York Attorney General Letitia James, who enforces the law, is the named defendant. Her office did not immediately comment.

Since acquiring Twitter in October 2022 for $44 billion, Musk has promoted himself as a free speech absolutist, significantly reducing content moderation on the platform, which was rebranded as X.

New York’s law, signed in December by Democratic Governor Kathy Hochul with help from the Anti-Defamation League, requires platforms to disclose their efforts and report progress in combating harmful content.

The law mirrors a similar 2023 California law, whose enforcement was partially blocked by a federal appeals court last September over free speech concerns. Notably, California agreed in February to suspend enforcement of disclosure requirements after reaching a settlement with X.

Legislators Hoylman-Sigal and Lee expressed confidence that the court will uphold New York’s law, emphasizing the necessity of transparency given Musk’s resistance.

Case Reference: X Corp v. James, U.S. District Court, Southern District of New York, No. 25-05068.