Amazon CEO Andy Jassy Says Layoffs Are About Culture, Not AI

Amazon CEO Andy Jassy has publicly addressed the company’s decision to lay off 14,000 corporate employees, clarifying that the move is not driven by financial constraints or artificial intelligence.

Speaking during Amazon’s quarterly earnings call on October 31, 2025, Andy emphasized that the layoffs are part of a broader effort to fix internal culture and improve operational efficiency.

Amazon Layoffs: A Cultural Reset, Not a Cost-Cutting Exercise

Andy stated that the decision to reduce headcount was rooted in the need to eliminate bureaucracy and restore a sense of ownership across Amazon’s teams.

“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,” he said.

Instead, the layoffs reflect a strategic shift aimed at rebuilding Amazon’s culture and making the organization more agile.

Over the past few years, Amazon has experienced rapid growth, which Andy acknowledged led to increased layers of management and diluted accountability.

This, in turn, slowed down decision-making and execution.

The layoffs are intended to reverse that trend and bring Amazon closer to its startup roots, where speed and ownership were central to its success.

Contrasting Views on AI’s Role

While some industry observers initially speculated that the layoffs were linked to AI-driven automation or cost-cutting measures, Andy’s comments directly countered those assumptions.

He clarified that artificial intelligence was not a factor in this round of job cuts. However, Amazon continues to invest in AI technologies.

The focus, he reiterated, is on cultural transformation rather than technological displacement.

This stance contrasts with other tech companies that have cited AI as a reason for restructuring or downsizing.

Andy’s remarks suggest that Amazon is taking a different approach, prioritizing internal alignment and operational clarity over immediate technological shifts.

Amazon Employee Reactions and Future Outlook

The announcement has sparked concern among Amazon employees, particularly given the scale of the layoffs and the timing.

However, Andy maintained that the changes are necessary to position the company for long-term success.

He acknowledged the difficulty of the decision but emphasized its strategic importance.

Andy hinted that further changes could be on the horizon. These changes will depend on how the company evolves in response to its cultural reset.

No additional layoffs have been confirmed at Amazon.

However, the CEO’s comments indicate that the company will keep evaluating its organizational structure and performance standards.

Rebuilding Amazon’s Identity

The broader message from Andy Jassy is clear: Amazon must become leaner, faster, and more focused.

By reducing layers of management and encouraging direct ownership, the company hopes to foster a more responsive and accountable workforce.

This cultural shift is seen as essential to maintaining Amazon’s competitive edge in a rapidly changing global market.

As Andy put it, the goal is to “make Amazon feel less like a corporate behemoth and more like the scrappy startup it once was”.

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