Amazon CEO Andy Jassy has downplayed the role of artificial intelligence in the company’s latest round of mass layoffs, instead attributing the decision to internal cultural issues. The e-commerce giant announced earlier this week it would cut 14,000 corporate jobs, a move that surprised many in the tech industry, where overhiring and AI-driven automation are often blamed for workforce reductions.
During Thursday’s earnings call, Jassy made it clear: “It’s culture.” He explained that as Amazon rapidly grew—adding employees, office locations, and new business ventures—the company unintentionally built layers of bureaucracy that diluted employee autonomy and responsibility. Jassy stressed that these cultural issues have led to inefficiencies, which the company is now working aggressively to correct.
Jassy’s remarks echoed earlier efforts to restructure the company. He’s pushed for fewer management layers, more discipline in decision-making, and a stronger return-to-office policy. He also introduced an anonymous employee complaint line, which has already resulted in over 450 internal process changes aimed at cutting waste and improving productivity.
While Jassy tried to separate the layoffs from the rise of AI, not everyone is convinced. Amazon’s senior vice president of experience and technology, Beth Galetti, called AI “the most transformative technology since the internet” and noted that it is accelerating innovation company-wide. Reports have also surfaced of Amazon’s plans to expand automation in its fulfillment centers, further suggesting that AI is playing a larger role behind the scenes.
Back in June, Jassy himself warned employees in a company-wide memo that AI would eventually lead to job reductions. He pointed specifically to roles in inventory management, demand forecasting, and warehouse robotics as areas where AI could create substantial “efficiency gains.” Now, despite his latest attempt to shift the narrative to corporate culture, the reality is that AI continues to reshape how Amazon operates—and who it needs to employ.
Amazon is the second-largest private employer in the U.S., and this wave of layoffs signals more changes to come. Whether driven by culture or by code, the company’s transformation is far from over.
