Amazon’s 14,000 layoffs aren’t about money or AI, CEO says ‘it’s something else’
Posted on: Oct 31, 2025 11:50 IST | Posted by: Hindustantimes
virago chief executive director ship's officer (CEO) Andy Jassy opened up on the company's decision to cut 14,000, reason for which he said is neither money nor what was being commonly believed, AI.
The layoff announcement, he told analysts on Thursday’s earnings call, was “not really financially driven, and it’s not even really AI driven, not right now. It’s culture", according to a CNN report.
This came as Amazon reported a 13 per cent year-on-year jump in quarterly revenue to $180 billion.
Jassy said that as Amazon expanded its workforce, footprint and business lines in recent years, “you end up with a lot more people than what you had before, and you end up with a lot more layers … sometimes without realizing it, you can weaken the ownership of the people that you have who are doing the actual work.”
Amazon’s headcount, which hit more than 1.6 million in 2021, stood at roughly 1.5 million at the end of last year, according to SEC filings.
“It can lead to slowing you down as a leadership team,” the CNN report quoted Jassy as saying. “We are committed to operating like the world’s largest startup, and … that means removing layers,” he added.
While Amazon has framed the cuts as a move to stay “nimble” ahead of future AI-driven efficiencies, the decision has heightened anxiety about technology replacing workers.
Shares of Amazon rose 13 per cent in after-hours trading following the earnings release.
Amazon has formally begun notifying corporate workers impacted by its layoffs.
According to internal communications obtained by Business Insider, the business promised 90 days of full pay and benefits in the notification emails workers started this week.
Earlier this week, Beth Galetti, senior vice president of People Experience and Technology at Amazon, announced the layoffs, stating that although the company's performance is still solid, it needs to run more efficiently and leanly, particularly given its heavy reliance on automation and artificial intelligence.
Meanwhile, Galetti confirmed in an internal email that workers whose positions are being removed will be compensated for 90 days in full.
Additionally, they will be able to use business resources and tools for internal communication during their non-working period.
Global News Perspectives
In today's interconnected world, staying informed about global events is more important than ever. ZisNews provides news coverage from multiple countries, allowing you to compare how different regions report on the same stories. This unique approach helps you gain a broader and more balanced understanding of international affairs. Whether it's politics, business, technology, or cultural trends, ZisNews ensures that you get a well-rounded perspective rather than a one-sided view. Expand your knowledge and see how global narratives unfold from different angles.
Customizable News Feed
At ZisNews, we understand that not every news story interests everyone. That's why we offer a customizable news feed, allowing you to control what you see. By adding keywords, you can filter out unwanted news, blocking articles that contain specific words in their titles or descriptions. This feature enables you to create a personalized experience where you only receive content that aligns with your interests. Register today to take full advantage of this functionality and enjoy a distraction-free news feed.
Like or Comment on News
Stay engaged with the news by interacting with stories that matter to you. Like or dislike articles based on your opinion, and share your thoughts in the comments section. Join discussions, see what others are saying, and be a part of an informed community that values meaningful conversations.
Download the Android App
For a seamless news experience, download the ZisNews Android app. Get instant notifications based on your selected categories and stay updated on breaking news. The app also allows you to block unwanted news, ensuring that you only receive content that aligns with your preferences. Stay connected anytime, anywhere.
Diverse News Categories
With ZisNews, you can explore a wide range of topics, ensuring that you never miss important developments. From Technology and Science to Sports, Politics, and Entertainment, we bring you the latest updates from the world's most trusted sources. Whether you are interested in groundbreaking scientific discoveries, tech innovations, or major sports events, our platform keeps you updated in real-time. Our carefully curated news selection helps you stay ahead, providing accurate and relevant stories tailored to diverse interests.
No comments yet.