Amazon CEO Andy Jassy said the company’s decision to lay off 14,000 employees was driven not by financial pressure or artificial intelligence, but by a need to restore its culture and agility.
Speaking during Amazon’s quarterly earnings call on Thursday, Jassy described the move as part of a broader effort to streamline the organization and eliminate unnecessary layers that have built up over years of rapid expansion. “It’s not really financially driven, and it’s not even really AI driven, not right now. It’s culture,” he said in response to an analyst’s question.
The e-commerce giant reported a strong quarter, with revenue rising 13% year-on-year to $180 billion. Despite the layoffs, Amazon’s financial performance remains robust, and the company’s stock jumped 13% in after-hours trading following the announcement.
Jassy said the company had grown so quickly that it inadvertently diluted accountability and efficiency. “As you add headcount, locations and lines of business, you end up with a lot more people than what you had before, and you end up with a lot more layers,” he said. “Sometimes without realizing it, you can weaken the ownership of the people that you have who are doing the actual work.”
Amazon’s workforce peaked at over 1.6 million in 2021, before declining slightly to 1.5 million employees last year, according to filings with the Securities and Exchange Commission. The latest job cuts reflect Jassy’s push to “operate like the world’s largest startup,” an internal mantra that emphasizes speed, accountability, and innovation.
“It can lead to slowing you down as a leadership team,” Jassy said. “We are committed to operating like the world’s largest startup, and that means removing layers.”
While Amazon framed the cuts as a cultural reset, the announcement has reignited concerns about automation and AI-driven job losses across the tech industry. The company has heavily invested in artificial intelligence to improve logistics, customer service, and cloud computing, fueling speculation that technology could soon replace many human roles.
Jassy, however, dismissed the idea that the current layoffs were connected to AI. He said the company wants to remain nimble and adaptable as AI continues to evolve but emphasized that the layoffs were about simplifying how teams operate rather than cutting costs.
The move follows several rounds of workforce reductions across major tech companies this year as firms adjust to post-pandemic realities and a more competitive AI landscape. Yet unlike many peers, Amazon’s layoffs come during a period of financial strength, suggesting a deliberate cultural restructuring rather than a cost-saving measure.
As Amazon continues to refine its business structure, Jassy’s focus on culture signals a shift toward long-term operational efficiency. Investors appear to have welcomed the move, with markets rewarding the company’s decisive action even amid growing public concern over the future of work in the age of AI.
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