Amazon CEO Andy Jassy addressed the company’s decision to lay off 14,000 employees, clarifying that the move was not driven by financial concerns or AI, as some had speculated. The announcement came shortly after Amazon reported a 13% year-on-year rise in quarterly revenue, reaching $180 billion. Jassy explained that as Amazon expanded its workforce, operations, and business lines in recent years, the company accumulated more employees and management layers than necessary. This, he said, can dilute ownership among those performing core tasks and slow down leadership decision-making.
Amazon’s headcount, which peaked at over 1.6 million in 2021, had decreased to roughly 1.5 million by the end of last year. Jassy emphasized that the company aims to maintain a “startup-like” agility by streamlining layers and enhancing efficiency. While the layoffs are presented as a way to stay nimble and prepare for AI-driven advancements, concerns about technology replacing jobs have intensified.
Beth Galetti, SVP of People Experience and Technology, noted that the cuts aim to make Amazon leaner and more efficient. Employees affected will receive 90 days of full pay and continued access to company resources for internal communication during this period. Following the earnings report, Amazon shares rose 13% in after-hours trading.
