Mon Nov 03 14:40:00 UTC 2025: News Article:

Amazon CEO Claims Layoffs Driven by “Cultural Fit” Not Finances or AI

By Marco Quiroz-Gutierrez

Amazon CEO Andy Jassy addressed the company’s recent layoffs of 14,000 employees this week, stating the decision was primarily driven by a desire to improve the company’s “cultural fit,” not financial pressures or the rise of artificial intelligence.

Speaking during the company’s quarterly earnings call on Thursday, Jassy emphasized that the cuts, largely affecting middle management, were about streamlining the organization and empowering frontline employees. “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 stated, adding, “It’s culture.”

The layoffs follow a prior memo where Jassy indicated AI-driven “efficiency gains” would lead to a need for fewer employees. Amazon’s SVP of people also said the layoffs were about adapting to “transformative technology.” Jassy explained the company’s rapid growth in recent years, increasing from 798,000 employees in 2019 to 1.55 million currently, has led to increased layers within the organization, potentially hindering decision-making at the frontline level.

“Sometimes without realizing it, you can weaken the ownership of the people that you have who are doing the actual work and who own most of the two-way door decisions, the ones that should be made quickly and right at the front line,” Jassy said.

Amazon’s job cuts mirror a trend seen at companies like Salesforce, Target, and Paramount, who have also laid off thousands. While Federal Reserve Chairman Jerome Powell has noted that some companies are citing AI as a reason for hiring pauses and layoffs, research suggests the impact is varied across industries.

Jassy acknowledged the ongoing “technological transformation” and the need for companies to be adaptable. “It’s important to be lean, it’s important to be flat, and it’s important to move fast,” he said. “That’s what we’re going to do.”

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