Amazon Cuts 14,000 Employees for 'Culture,' Not AI

Amazon CEO Andy Jassy explained that the company’s decision to lay off 14,000 employees was driven primarily by “culture,” not financial concerns or even, for now, artificial intelligence.

Jassy stated that the layoffs are a result of Amazon’s massive headcount expansion, which peaked at over 1.6 million employees in 2021.

This growth led to the creation of too many layers within the organisation, which he claims weakened employee “ownership” and slowed down the leadership team.

Amazon (News Central TV) — Amazon cuts 14,000 employees for ‘culture,’ not AI Credit: India Today

The goal of the cuts is to keep Amazon operating like a “large startup” by “removing layers” to stay “nimble.”

While AI efficiency was mentioned as an anticipation for future cuts, Jassy downplayed its immediate role.

The announcement came after Amazon reported strong quarterly sales growth.

Author

Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.