Amazon Layoffs: CEO Andy Jassy Reveals The Reason Behind 14,000 Job Cuts

Amazon CEO Andy Jassy has confirmed that the company will lay off about 14,000 corporate employees, but not for the reasons most people might assume. Jassy said the move isn’t about cutting costs or the rise

of artificial intelligence -- it is about fixing Amazon’s work culture and restoring the agility the company once had.Speaking during the company’s quarterly earnings call, Jassy made it clear that the layoffs are part of a 'cultural reset' rather than a financial restructuring. Jassy pointed out that Amazon’s corporate workforce has tripled between 2017 and 2022, which made the organisation slower and more complex. "When that happens, sometimes without realising it, you can weaken the ownership of the people doing the actual work," he added.The comment highlights a concern that Amazon’s rapid growth over the years may have created too many management layers — something that has diluted the company’s fast-moving, entrepreneurial DNA.

Bringing Back The 'Startup' Spirit

The latest job cuts are aimed at simplifying Amazon’s structure and making it more nimble. Jassy said he wants Amazon to operate like the world’s largest startup, a phrase often used by founder Jeff Bezos to describe the company’s original culture of speed and innovation.Jassy also reassured investors that these layoffs are not a reaction to a financial crisis but part of a long-term strategy to make Amazon leaner and faster. While he admitted that artificial intelligence will eventually make teams smaller, he clarified that the current layoffs are not linked to automation.

Focus on the Future

This isn’t the first time Amazon has made large-scale job cuts. The company also laid off around 27,000 employees in 2023. With the latest move, Jassy is trying to restore a sense of ownership and accountability among employees and ensure that the company can adapt quickly to the fast-changing tech landscape.