Amazon’s CEO Andy Jassy has a clear message: the company’s latest round of layoffs — around 14,000 corporate positions — isn’t about slashing costs or letting artificial intelligence take over jobs. Instead, it’s about reclaiming speed and simplicity in a company that, he says, has become too bulky for its own good.

Speaking during Amazon’s quarterly earnings call, Jassy framed the move as a “philosophical decision” — a cultural reset aimed at reviving the scrappy, fast-moving energy that defined Amazon’s early years under Jeff Bezos.

Trimming the fat to move faster

Jassy explained that Amazon’s corporate structure had grown unwieldy during its pandemic-era boom, when headcount nearly tripled between 2017 and 2022. That expansion, he admitted, diluted accountability and slowed down decision-making.

“When a company grows that fast, it can unintentionally weaken the sense of ownership among the people doing the actual work,” he said. Echoing Bezos’ famous “two-way door” principle — which encourages taking quick, reversible decisions — Jassy warned that excessive management layers had made Amazon sluggish.

The layoffs, he said, are part of a plan to flatten hierarchies and give employees more autonomy. “We want to operate like the world’s largest startup,” Jassy told investors — a mantra that has become a defining theme of his leadership.

A mindset shift, not a money move

Jassy dismissed the idea that the job cuts were driven by automation or financial stress. While he has previously acknowledged that AI will gradually streamline operations, he emphasised that this particular decision was about restoring agility, not replacing people.

“This isn’t about cutting costs,” he said. “It’s about rethinking how we work and making sure we can keep pace with the technological changes happening all around us.”

He described the layoffs as part of a “cultural reset” designed to make Amazon leaner, more decisive, and more connected to its entrepreneurial roots — especially as the company invests heavily in AI, logistics, and cloud innovation.

Reassuring investors and employees

Jassy’s comments were also aimed at reassuring stakeholders that Amazon remains on strong footing. “The announcement was not financially driven,” he stressed, signalling that the company’s balance sheet remains healthy.

Since taking over from Jeff Bezos in 2021, Jassy has repeatedly pushed for organisational streamlining. Reports suggest he still views parts of Amazon as overly complex, despite prior restructuring efforts — including 27,000 job cuts in 2023.

His long-term vision: a flatter, faster Amazon that can make decisions quickly and empower employees to act with ownership.

Back to where it began

In essence, Jassy is steering Amazon back to its startup DNA — a culture of experimentation, independence, and relentless pace. “Given the transformation happening across industries,” he told analysts, “it’s more important than ever to be lean, flat, and fast-moving.”

For those losing their jobs, the change may feel harsh. But for Jassy, this reset is essential to keep Amazon’s innovative spirit alive in a world where technology — and expectations — evolve faster than ever.