Amazon's Big Change: Why 14, 000 Jobs Were Cut

Amazon recently let go of 14,000 employees. The company's CEO, Andy Jassy, explained that this wasn't about saving money or replacing people with AI. Instead, he said it was about fitting the right people into the company's culture.

Rapid Growth and Management Layers

This move comes after Amazon grew a lot over the past few years. The company now has about 1.55 million employees, which is a big jump from 798,000 before the pandemic. Jassy pointed out that when a company grows this fast, it can end up with too many layers of management. This can slow things down and make it harder for employees to make quick decisions.

Staying Lean and Adaptable

Jassy also talked about how important it is for companies to stay lean and adaptable, especially with all the changes happening because of new technology. He said that Amazon will focus on being quick and efficient.

Other Companies Following Suit

Other big companies like Salesforce, Target, and Paramount have also laid off workers recently. Some have said that AI is a reason for these cuts. However, a study by Goldman Sachs found that only a small number of companies are laying off people because of AI.

Amazon's Stance

Amazon's spokesperson didn't comment on the situation. But Jassy made it clear that the layoffs were about making sure the company's culture stays strong and that employees feel like they own their work.