Amazon CEO Says Massive Corporate Layoffs Were About Agility - Not AI or Cost-Cutting

Amazon CEO Andy Jassy says the company's latest big round of layoffs -- about 14,000 corporate jobs -- wasn't triggered by financial strain or AI replacing workers, but rather a push to stay nimble. From a report: Speaking with analysts on Amazon's quarterly earnings call Thursday, Jassy said the decision stemmed from a belief that the company had grown too big and too layered. '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. 'Really, it's culture.'

Jassy's comments are his first public explanation of the layoffs, which reportedly could ultimately total as many as 30,000 people -- and would be the largest workforce reduction in Amazon's history. The news this week prompted speculation that the cuts were tied to automation or AI-related restructuring. Earlier this year, Jassy wrote in a memo to employees that he expected Amazon's total corporate workforce to shrink over time due to efficiency gains from AI. But his comments Thursday framed the layoffs as a cultural reset aimed at keeping the company fast-moving amid what he called 'the technology transformation happening right now.'

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