"It was a valid question. Amazon's announcement of 14,000 job cuts this week came just months after Jassy said AI would likely help the company shrink its corporate workforce due to "efficiency gains." But on Thursday, Jassy denied that the much-hyped tech was responsible for putting the thousands of employees - many of them software engineers - out of work."
"Though most of that growth is surely in the juggernaut's vast distribution centers and warehouses, Jassy still said the company ended up with "a lot more layers." He continued, "When that happens, 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. And it can lead to slowing you down.""
Amazon announced 14,000 corporate job cuts, including 1,403 positions in California, amid strong quarterly revenue and profit figures. CEO Andy Jassy said the reductions were not primarily financially driven or immediately AI-driven but reflected cultural problems and excess organizational layers. Filings show Amazon finished 2024 with more than 1.5 million workers, about 88% higher than at the end of 2019, with much growth concentrated in distribution centers and warehouses. Jassy warned that added layers can weaken frontline ownership, slow two-way-door decisions that should be made quickly, and reduce operational speed, and he emphasized the need to remain lean amid rapid technological change.
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