- Amazon CEO expands motivation for recent major job cuts
- Cuts “weren’t even really driven by AI… it’s culture,” says Andy Jassy
- Up to 14,000 corporate jobs could be cut in latest losses
Amazon CEO Andy Jassy has revealed more details about the company’s plans to lay off 14,000 workers, saying the cuts were influenced by a desire to remain relevant and agile in an ever-changing market.
Speaking on Amazon’s latest quarterly earnings call to analysts, Jassy said the cuts appeared to act on a belief that the company had become too big and bulky after overhiring in recent years.
“The announcement we made a few days ago wasn’t really driven by financial reasons, and it’s not even really driven by AI, at least not at this point,” he said. “Really, it’s culture.”
Engaged
Jassy went on to describe Amazon’s approach to what he called “the technological transformation that’s happening right now,” noting that additional layers of management in the company were delaying decision-making and slowing progress.
“When that happens, sometimes inadvertently, it can weaken the ownership of the people who are doing the real work and who own the most two-way decisions, the ones that need to be made quickly and directly on the front lines,” Jassy said.
“We are committed to operating as the largest startup in the world.”
Amazon said in its financial results that it would take a $1.8 billion severance charge in the quarter related to the layoffs; However, the company reported quarterly revenue of $180.2 billion, up 13% year-over-year, and $21 billion in profits.
Jassy’s comments echo those made by Beth Galetti, Amazon’s senior vice president of People Experience and Technology, who noted in the original memo to employees that the cuts would make Amazon “even stronger,” meaning it could shift resources, “to ensure we’re investing in our biggest bets and what matters most for our customers’ current and future needs.”
“We are convinced that we must organize in a more agile way, with fewer layers and more ownership, to move forward as quickly as possible for our clients and businesses,” Galetti added.
Amazon has about 1.55 million employees companywide, but the cuts will affect its 350,000 corporate workers.
Jassy had warned in early 2025 that the rise of AI technology at large corporations like Amazon would likely lead to job cuts, saying in a memo to staff that the company “will need fewer people to do some of the jobs being done today, and more people doing other types of jobs.”
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