Amazon's CEO says its 14,000 job cuts weren't driven by costs or AI: 'It's about culture'
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Amazon's CEO says its 14,000 job cuts weren't driven by costs or AI: 'It's about culture'
""The announcement that we made a few days ago was not really financially driven, and it's not even really AI-driven, not right now at least," Jassy said, referring to the job cuts announced on Tuesday. "It really - it's culture." Jassy's remark aligns with his broader mission to reshape Amazon's culture this year, which Business Insider chronicled. He is trying to raise performance standards, enforce discipline, and eliminate bureaucracy."
""This generation of AI is the most transformative technology we've seen since the Internet, and it's enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones)," Galetti wrote. Tuesday's layoffs marked Amazon's biggest job cut since it shed 27,000 positions in late 2022. On Thursday's call, Jassy said Amazon's rapid growth in recent years created "a lot more layers" that have slowed decision-making."
"On Thursday's call, Jassy said Amazon's rapid growth in recent years created "a lot more layers" that have slowed decision-making. He emphasized that, with the ongoing AI transformation, there has never been a more critical time for the company to operate leaner and move faster. "Sometimes, without realizing it, you can weaken the ownership of the people that you have who are doing the actual work," Jassy added. "And it can lead to slowing you down.""
Amazon eliminated 14,000 jobs this week. CEO Andy Jassy said the cuts were driven by cultural fit, not financial motives or AI at present. Jassy has been pursuing a cultural reshaping to raise performance standards, enforce discipline, and remove bureaucracy. Senior vice president Beth Galetti framed AI as a rapidly changing force enabling faster innovation. The recent reductions are the company's largest since 27,000 positions were cut in late 2022. Jassy said rapid growth added layers that slowed decision-making and that operating leaner is critical amid AI-driven transformation. Jassy warned that excess layers can weaken ownership and slow the company.
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