That doesn’t mean Costco is resisting tech innovation. The retailer, which employs more than 341,000 people globally, has used AI to streamline operations across parts of the business, from pharmacy and gas stations to accounting and IT. But Vachris said the technology is overall intended to support employees, not eliminate the need for them.
In many ways, that approach appears to be paying off financially. Costco shares are up roughly 17% this year, giving the retailer a market capitalization exceeding $440 billion.
When asked about the company’s biggest threat, Vachris answered simply: “Us losing our way.”
Fortune reached out to Costco for further comment.
“At the end of the day, we know those job skills are going to change, as it always has,” he added. “But one of the things with AI is it’s changing more rapidly than people anticipate. And you’ve got a lot of hype around it.”
Still, the tension between AI optimism and workforce reductions remains difficult to ignore—especially as tech companies in particular race to invest in innovation. Just a week after Krishna’s comments, IBM announced plans to cut thousands of workers by the end of 2025 as it shifted focus to additional software and AI areas. A company spokesperson told Fortune at the time that the round of layoffs would impact a single-digit percentage of the company’s total workforce, and when combined with new hiring, would leave IBM’s U.S. headcount roughly flat.
