"According to Amazon CEO Andy Jassy, this week's 14,000 layoffs were not caused by a focus on AI or to cut costs. Instead, the massive layoffs are intended to kickstart a cultural change within the company. Amazon reported quarterly revenue of $180.2 billion, a 13% increase year-on-year. Profits amounted to $21 billion. Nevertheless, the company is taking a $1.8 billion charge for severance payments this quarter."
""It's not even really AI-driven, not right now, at least. Really, it's culture." According to the CEO, the company is struggling with too many layers of management that slow down decision-making. "When that happens, you unknowingly weaken the ownership of the people who do the real work," Jassy said. He was referring to employees who have to make daily decisions on the front line. They need to be able to act quickly without slow management layers getting in the way."
"Jassy emphasized that Amazon is committed to operating as the world's largest startup. He believes that the technological transformation currently taking place requires an organization that can move quickly. Too many layers in the organization would hinder progress. Earlier this year, Jassy warned that the rise of AI within large companies such as Amazon would likely lead to job losses. In a memo, he wrote: "We will need fewer people for some jobs that are done now, and more people for other types of work.""
Amazon initiated 14,000 layoffs aimed at kickstarting cultural change rather than cost-cutting or AI focus. Quarterly revenue reached $180.2 billion, a 13% increase year-on-year, with profits of $21 billion. The company will take a $1.8 billion charge for severance this quarter. The layoffs affect about 350,000 office workers within a global workforce of approximately 1.55 million. A staff memo described the move as necessary to become "even stronger" and to shift resources to customer priorities. The company cites excessive management layers that slow decision-making and impede frontline ownership and agility.
Read at Techzine Global
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