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Saved February 14, 2026
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Amazon CEO Andy Jassy is pushing for a major restructuring to make the company operate like a startup, leading to significant layoffs and a return to in-office work. The latest round of cuts will affect around 14,000 employees, adding to over 27,000 job losses since late 2022, as Jassy aims to flatten management layers and improve efficiency amid rising competition and costs.
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Amazon CEO Andy Jassy is pushing for a significant cultural shift within the company, aiming to operate like the "world's largest startup." This involves flattening the organizational structure to reduce bureaucracy and speed up decision-making. At a recent conference, he outlined plans to increase individual contributors relative to managers by 15% by early 2025. However, these ambitions come amid a backdrop of substantial layoffs, with Amazon announcing cuts of about 14,000 corporate positions last week, part of a broader reduction that has exceeded 27,000 jobs since late 2022.
The layoffs are not solely financial moves but part of Jassy's push to address what he describes as a cultural issue stemming from years of rapid hiring. Employees report that the pressure to innovate faster, particularly in artificial intelligence, has intensified amid these cuts. While some staff perceive the need to streamline management as positive, others feel overwhelmed and anxious about job security. The company is also closing several physical store chains and discontinuing less viable projects, signaling a shift in focus.
Compounding the challenges, Amazon faces increasing competition in cloud services from Microsoft and Google, and its Alexa division is struggling to keep pace in the voice assistant market. Jassy's strategy includes significant investments in AI infrastructure, with plans to boost capital expenditures to $125 billion this year. The balance between cutting costs and fostering innovation while maintaining employee morale remains a significant challenge as Amazon navigates this tumultuous period.
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