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Amazon Frames 14,000 Corporate Layoffs as a Cultural Reset, Not an AI or Cost Cut

After a strong quarter that lifted the stock, CEO Andy Jassy said the goal is to flatten layers to speed decisions.

Overview

  • Jassy told analysts the cuts were not financially or AI driven, describing them as a move to remove layers, restore frontline ownership, and operate more like a startup.
  • An internal note from HR chief Beth Galetti called this generation of AI the most transformative since the internet and argued for a leaner structure to move faster.
  • Amazon reported $180.2 billion in quarterly sales, up 13% year over year, with AWS up 20% to $33 billion, and shares rose about 13% after hours.
  • Some employees were notified of eliminations via text messages, and internal communications promised 90 days of full pay and benefits for affected corporate staff.
  • Outside reporting has flagged broader automation ambitions and suggested additional reductions could be possible after the holidays, which the company has not confirmed.