{"id":107592,"date":"2025-10-31T09:04:07","date_gmt":"2025-10-31T09:04:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/107592\/"},"modified":"2025-10-31T09:04:07","modified_gmt":"2025-10-31T09:04:07","slug":"amazons-14000-layoffs-arent-about-money-or-ai-ceo-says-its-something-else","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/107592\/","title":{"rendered":"Amazon\u2019s 14,000 layoffs aren\u2019t about money or AI, CEO says \u2018it\u2019s something else\u2019"},"content":{"rendered":"\n

Amazon chief executive officer (CEO) Andy Jassy opened up on the company’s decision to cut 14,000<\/a>, reason for which he said is neither money nor what was being commonly believed, AI.<\/p>\n

\"Amazon Amazon CEO Andy Jassy, after the latest layoff announcement, explained that the company is planning to be more streamlined in its costs and headcount. (File) <\/p>\n

The layoff announcement, he told analysts on Thursday\u2019s earnings call, was \u201cnot really financially driven, and it\u2019s not even really AI driven, not right now. It\u2019s culture”, according to a CNN report.<\/p>\n

This came as Amazon reported a 13 per cent year-on-year jump in quarterly revenue to $180 billion.<\/p>\n

Jassy said that as Amazon expanded its workforce, footprint and business lines in recent years, \u201cyou end up with a lot more people than what you had before, and you end up with a lot more layers \u2026 sometimes without realizing it, you can weaken the ownership of the people that you have who are doing the actual work.\u201d<\/p>\n

What did Andy Jassy say?<\/p>\n

Amazon\u2019s headcount, which hit more than 1.6 million in 2021, stood at roughly 1.5 million at the end of last year, according to SEC filings.<\/p>\n

\u201cIt can lead to slowing you down as a leadership team,\u201d the CNN report quoted Jassy as saying. \u201cWe are committed to operating like the world\u2019s largest startup, and \u2026 that means removing layers,\u201d he added.<\/p>\n

While Amazon has framed the cuts as a move to stay \u201cnimble\u201d ahead of future AI-driven efficiencies, the decision has heightened anxiety about technology replacing workers.<\/p>\n

Shares of Amazon rose 13 per cent in after-hours trading following the earnings release.<\/p>\n

Amazon has formally begun notifying corporate workers<\/a> impacted by its layoffs.<\/p>\n

According to internal communications obtained by Business Insider, the business promised 90 days of full pay and benefits in the notification emails workers started this week.<\/p>\n

Role of AI in layoffs?<\/p>\n

Earlier this week, Beth Galetti, senior vice president of People Experience and Technology at Amazon, announced the layoffs, stating that although the company’s performance is still solid, it needs to run more efficiently and leanly, particularly given its heavy reliance on automation and artificial intelligence.<\/p>\n

Meanwhile, Galetti confirmed in an internal email that workers whose positions are being removed will be compensated for 90 days in full.<\/p>\n

Additionally, they will be able to use business resources and tools for internal communication during their non-working period.<\/p>\n","protected":false},"excerpt":{"rendered":"Amazon chief executive officer (CEO) Andy Jassy opened up on the company’s decision to cut 14,000, reason for…\n","protected":false},"author":2,"featured_media":107593,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,67358,13055,343,344,70247,85,46,70248,125],"class_list":{"0":"post-107592","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-amazon-layoffs","10":"tag-andy-jassy","11":"tag-artificial-intelligence","12":"tag-artificialintelligence","13":"tag-corporate-workers","14":"tag-il","15":"tag-israel","16":"tag-severance-pay","17":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/107592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=107592"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/107592\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/107593"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=107592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=107592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=107592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}