Article: Amazon CEO Reveals Real Reason Behind 14,000 Job Cuts

Amazon has cut 14,000 corporate employees, representing 4% of its 350,000-person global corporate workforce—one of the largest layoffs in the company’s history. However, CEO Andy Jassy clarified that the decision wasn’t driven by artificial intelligence concerns or financial pressures. Instead, the company is restructuring to align with its cultural values and improve organizational efficiency.

The Real Reason Behind Amazon’s Massive Layoffs

Jassy explained that Amazon’s rapid expansion over recent years created excessive organizational layers that slowed decision-making processes. The company nearly doubled its workforce from 798,000 employees in 2019 to 1.5 million by mid-2025. This explosive growth resulted in bureaucratic complexity that hindered agility and accountability. The CEO emphasized the need to return to a leaner, more efficient structure where teams can make decisions faster and take greater ownership of outcomes.

Building a Culture of Accountability

The layoffs represent Amazon’s strategic pivot toward cultivating a more accountable and agile workplace culture. By reducing management layers, the company aims to empower individual teams and create clearer lines of responsibility. Jassy’s statement suggests that cultural misalignment—rather than external economic factors—was the primary driver of the restructuring decision. This approach signals Amazon’s commitment to maintaining its entrepreneurial spirit despite its massive scale.

The timing of this announcement challenges prevailing narratives about tech industry layoffs. While many companies blamed economic headwinds or AI automation for workforce reductions, Amazon’s leadership attributes its cuts to internal organizational needs. The company, which operates as the world’s second-largest private employer with approximately 1.5 million employees across all operations, is betting that a slimmer corporate structure will drive better performance and innovation moving forward.