How Amazon, Duolingo, Shopify, and Others Say AI Will Reshape Staffing

Tech companies once blamed layoffs on overhiring and market shifts—now it’s AI.

Recent statements from firms like Amazon, Shopify, British Telecom, Duolingo, and Klarna suggest that automation is reducing demand for human workers. As these companies pour heavily into AI, they’re simultaneously streamlining costs mostly through layoffs. In 2024, 549 tech firms laid off approximately 152,000 employees, according to Layoffs.fyi. 

At the same time, many CEOs are championing “AI-first” strategies and touting productivity gains. But the workforce may not be ready, with only 62% of employees having received any AI-related training, even as companies push to scale AI across their operations, according to Gartner.

“We’re at this moment where making big statements is about getting attention and drawing focus to the fact that AI is being used for real business impact,” Gartner vp analyst Nicole Greene told ADWEEK. “Rather than the tangible, long-term conversation around what does it really look like to re-skill and up-skill talent for a modern workforce.”

Former Publicis chief strategist and growth officer Rishad Tobaccowala said the shift is also about rebalancing power. Companies may need 20% to 25% fewer people for the same output, he said, but that future will rely on a new kind of worker, one who can collaborate with AI.

“People are talking about AI strategy… that’s the stupidest thing in the world,” he said. “You need to figure out how your entire strategy is changed because of AI.”

Here’s what company leaders have said publicly about how they believe AI will impact their workforce, in alphabetical order.

Amazon

Action: Since 2022, Amazon has laid off more than 27,000 employees across multiple divisions. While the company initially cited macroeconomic uncertainty, recent statements from leadership suggest AI is becoming a key factor in how it envisions future staffing.

What it said: In a June blog post, CEO Andy Jassy pointed to the company’s deep investment in generative AI—highlighting over 1,000 services and applications in progress—and signaled a shift in how work gets done. “As we roll out more generative AI and agents,” he wrote, “it should change the way our work is done… [and] we’ll need fewer people doing some of the jobs that are being done today.” While Jassy didn’t specify which roles would be affected, he noted that the company expects to see workforce reductions in the coming years as it leans into AI-driven efficiency.

Jassy also pointed to advertising as a clear example of AI integration, citing Amazon’s suite of tools that help brands plan, onboard, create, and optimize campaigns, used by over 50,000 advertisers in Q1.

British Telecom

Action: British Telecom plans to cut 55,000 jobs by 2030, roughly 40% of its 130,000-person workforce. Of those, at least 10,000 roles could be replaced by AI, according to The Financial Times.

What it said: CEO Allison Kirkby told FT the company is exploring the full impact of AI and suggested that, “depending on what we learn from AI … there may be an opportunity for BT to be even smaller by the end of the decade.” The company has already begun integrating generative AI into customer-facing roles, including sales and support operations.

Duolingo

Action: Cut around 10% of its contractor workforce in 2023, as it turns to AI models like OpenAI’s GPT-4 to streamline content production and translations.

What it said: CEO Luis von Ahn has positioned the company as “AI-first,” saying that achieving that vision means rethinking “much of how we work,” and “making minor tweaks to systems designed for humans won’t get us there.” As part of the shift, Duolingo is placing “constructive constraints” on hiring: headcount will only be approved if a team “cannot automate more of their work.” The company is also experimenting with AI in hiring and performance reviews.

Klarna

Action: Klarna has reduced its workforce by about 40%, with CEO Sebastian Siemiatkowski telling CNBC in May that the cuts are largely due to AI. The Swedish fintech company previously said it planned to shrink its headcount from 3,800 to 2,000 employees over the next few years. The company posted a $99 million loss in Q1, attributing it to one-off costs related to depreciation, share-based payments, and restructuring.

What it said: In marketing specifically, CMO David Sandström told ADWEEK that team size reductions were driven in part by the growing capabilities of generative AI, and that further cuts could follow as the technology evolves. 

Shopify 

Action: Shopify has trimmed its workforce in the last two years, first by 14% in 2022, followed by another 20% in 2023. The company ended 2024 with 8,100 employees, down from 8,300 the previous year, per the company’s filing. 

What it said: In a memo to employees, which CEO Tobi Lütke posted on X, Shopify laid out a new baseline: “Reflexive AI usage,” in other words, all staffers tinkering with AI, is now expected across the company. Teams requesting headcount must first explain why the work can’t be done with AI. “What would this area look like if autonomous AI agents were already part of the team?” Lütke wrote. The company also said it plans to add AI-related questions to its performance and peer review processes.