- Amazon CEO expands on motivation for recent major job cuts
- Cuts were “not even really AI-driven…it’s culture”, says Andy Jassy
- Up to 14,000 corporate roles could be cut in latest losses
Amazon CEO Andy Jassy has revealed more details on the company’s plans to lay off 14,000 workers, saying the cuts were influenced by a desire to stay relevant and agile in an ever-changing market.
Speaking on Amazon’s latest quarterly earnings call to analysts, Jassy said the cuts looked to act on a belief the company had become too large and bulky following over-hiring in recent years.
“The announcement that we made a few days ago was not really financially driven, and it’s not even really AI-driven – not right now, at least,” he said. “Really, it’s culture.”
Committed
Jassy went on to outline Amazon’s approach to what he called, “the technology transformation happening right now,” noting that extra management layers in the company were delaying decision-making and holding back progress.
“When that happens, sometimes without realizing it, you can weaken the ownership of the people that you have who are doing the actual work and who own most of the two-way door decisions – the ones that should be made quickly and right at the front line,” Jassy said.
“We are committed to operating like the world’s largest startup.”
Amazon noted in its financial results it would take a $1.8 billion severance-related 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 profit.
Jassy’s comments echo those made by Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, who noted in the original note 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 to our customers’ current and future needs”.
“We’re convicted that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,” Galetti added.
Amazon has around 1.55 million employees across the entire company, but the cuts will affect its 350,000 corporate workers.
Jassy had warned earlier in 2025 the rise in AI technology in major corporations such as Amazon would likely lead to job cuts, saying in a memo to staff that the company, “will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”
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