“It Really is Culture”: CEO Jassy Denies AI Role in 14,000 Layoffs Amid Record Profits

Amazon CEO Andy Jassy offered a surprising explanation for the company’s decision to lay off 14,000 corporate workers, stating it was “not really financially driven” or “even really AI-driven.” Speaking to investors, Jassy claimed, “It really is culture,” explaining the move as an effort to make the tech giant more malleable and “startup-style.”
This comment comes just as Amazon posted blowout third-quarter earnings. The company’s stock jumped 9% after it revealed revenue of $180.17bn and $1.95 EPS, smashing analyst expectations.
The strong report was powered by the Amazon Web Services (AWS) cloud division, which grew 20% to $33bn in revenue. This growth, the fastest since 2022, occurred despite a recent, massive global outage that underscored the world’s reliance on its services.
Jassy’s denial on the investor call seems to contradict a company blog post about the cuts, which referenced AI advancements and the need for “staying nimble.” Jassy himself had previously suggested that AI would eventually mean “fewer people doing some of the jobs that are being done today.”
While downplaying AI’s role in layoffs, executives were keen to promote their AI investments to compete with rivals. They highlighted the Rufus shopping assistant and the imminent testing of Zoox autonomous vehicles in Washington D.C.