Amazon plans more layoffs: What CEO Andy Jassy means when he blames "culture" for the job cuts

Every round of layoffs comes with a stated reason. Sometimes it is slowing revenue, sometimes it is automation, or sometimes it is “efficiency.”

At Amazon, the explanation was different in October 2025.

According to Reuters, Amazon is preparing a second round of corporate job cuts next week, as part of a broader plan to eliminate around 30,000 roles. The first round in October reduced about 14,000 white-collar positions. The upcoming cuts are expected to be of similar scale.

The layoffs are likely to affect employees in Amazon Web Services (AWS), retail operations, Prime Video and the human resources division known internally as People Experience and Technology, Reuters said.

On paper, 30,000 jobs represent less than 2% of Amazon’s total global workforce of about 1.58 million employees. But they account for nearly 10%of its corporate staff. If completed, this would be the largest layoff in the company’s three-decade history.

The more revealing change, however, lies not in the numbers but in the explanation.

From artificial intelligence to “culture”

When Amazon announced the October cuts, the company linked them to the rise of AI. In an internal letter cited by various media sources, the company described AI as “the most transformative technology we’ve seen since the Internet,” adding that it enables companies to innovate faster.

But during Amazon’s third-quarter earnings call, CEO Andy Jassy reframed the reasoning. The reduction, he said, was “not really financially driven and it’s not even really AI-driven.” Rather, “it’s culture.”

He elaborated: “You end up with a lot more people than what you had before, and you end up with a lot more layers.”

That distinction is one of significance. If AI were the primary driver, the story would be about technology replacing human tasks. By attributing the cuts to culture, Jassy is pointing to structure rather than software.

What “culture” means inside a corporation

In corporate language, culture often refers to decision-making norms, reporting lines and how authority flows. When Jassy speaks of “layers,” he is describing management tiers that can slow approvals and diffuse accountability.

Over time, as companies expand, teams multiply. New roles are created to coordinate, supervise and review. Each additional layer may seem rational in isolation. Collectively, they can produce what executives call organisational bloat.

Bureaucracy, in this context, does not simply mean paperwork. It means processes that require multiple approvals, overlapping responsibilities and slower execution.

Jassy’s comments suggest that Amazon believes it has accumulated too many such layers. The layoffs are being framed as a structural correction rather than a response to weak demand.

This framing also aligns with his earlier statement. In 2025, Jassy said he expected Amazon’s corporate workforce to shrink over time as efficiencies from AI increase, according to Reuters. Even if AI is not the stated cause of this round, it remains part of their efficiency strategy.

A leaner centre

The cuts focus on corporate roles, not warehouse or fulfillment centre staff. The majority of Amazon’s workforce works in logistics and operations. The restructuring is therefore concentrated at the centre of decision making rather than at the edge of delivery.

Affected employees in October were told they would remain on payroll for 90 days, during which they could apply for internal positions or seek external work, Reuters reports. That period expires on Monday.

Inside the company, the effort to reduce layers has extended beyond headcount. Jassy has introduced an anonymous feedback system to identify inefficiencies. According to Reuters, more than 1,500 responses led to over 450 process changes. Amazon has also enforced a five-day return-to-office policy, one of the stricter mandates in the technology sector.

Why this matters beyond Amazon

Large corporations often describe layoffs as strategic resets. The language chosen mirrors how leadership wants the restructuring to be understood.

By saying the cuts are about culture rather than finances, Jassy is attempting to position Amazon as disciplined rather than distressed. The company is not presenting itself as reacting to crisis, it is presenting itself as correcting internal design.

At the same time, culture is not an external force. It is shaped by leadership decisions over time. A company that has “too many layers” reached that point through years of hiring, expansion and delegation.

When that structure is dismantled, the consequences are uneven. Some teams lose managers, some functions merge, some roles disappear entirely.

The language of culture may sound abstract. For the individuals affected, it translates into job loss.

The coming week will show whether this second round completes Amazon’s target of cutting around 30,000 corporate roles or signals further restructuring ahead.
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