Artificial intelligence is changing the way we work — and increasingly, who gets to do the work at all. Microsoft and Amazon, two of the region’s largest employers, are investing heavily in AI while signaling reductions in traditional roles. The changes are driven by a promise of efficiency: leaner teams, faster output, and fewer redundancies. But the impact on corporate headcounts is becoming harder to ignore.
Amazon CEO Andy Jassy recently told employees the company will likely need fewer workers in the years ahead as AI tools become more capable. With generative AI already embedded across much of the company’s operations, Amazon is preparing for a long-term reduction in its corporate workforce — even if large-scale layoffs haven’t been announced this year. In 2023, Amazon cut 27,000 roles and laid off several hundred more earlier this year. Amazon remains the nation’s second-largest employer and Washington’s largest, with more than 350,000 corporate employees.
Microsoft, meanwhile, has already announced another wave of job cuts as it ramps up AI-related investments. In the first days of July, the Redmond-based company laid off roughly 9,000 employees — 830 of whom were based in Washington. These come on top of 6,000 positions eliminated in May and June, part of a broader effort to streamline operations and reduce layers of management.
This year, Microsoft is committing $80 billion to AI spending — a notable figure given it reported $70 billion in sales and $25.8 billion in profits last quarter. As the second-largest tech employer in the Puget Sound area, with 54,000 local employees, any shift in strategy at Microsoft will carry regional weight.
The trend extends beyond Seattle’s tech giants. Companies like Shopify and Salesforce are also rethinking workforce structures in light of AI. At some firms, teams must now justify why new roles can’t be filled by technology before hiring is approved.
The message is consistent: as AI improves productivity, companies will need fewer people to do the same work. For now, workers are being encouraged to embrace the tools, adapt to smaller teams, and reimagine how they work.
This post was based on information found on The Seattle Times and Puget Sound Business Journal.
