Amazon: 14,000 Cuts Attributed to Culture, Reorgs for AI

Amazon announced cuts of about 14,000 corporate roles this week, which CEO Andy Jassy said were driven by cultural problems — excess management layers and weakened ownership — rather than immediate financial pressure or AI. Jassy blamed rapid growth since 2019 for added bureaucracy and said the company must operate leaner and faster, more like “the world’s largest startup.” Senior Vice President Beth Galetti confirmed organizational changes that will reduce some areas (including devices, advertising, Prime Video, human resources and AWS) while adding roles in others, and described this generation of AI as transformative and a reason to reorganize for speed. The cuts — which include hundreds of jobs in California — and Jassy’s comments have renewed debate because he earlier warned this summer that AI could compress headcount. Amazon reported strong quarterly results, posting roughly $180.2 billion in revenue and about $21.2 billion in profit, and its stock rose after the announcement.