“It wasn’t AI or Cost, but…” Amazon CEO’s First-ever Statement out Amid 14,000 Job Cuts

Recently, Amazon had a huge lay-off. Amazon cut down 14,000 jobs at once. On which, a debate sparked on social media where everybody feared that the white collar job is now not secured and many led to lay off due to AI hype. But now, the CEO of Amazon has given a clarification that the lay-off is not because of AI or cost cuts but due to culture. let’s understand what is he trying to clear out.

Amazon CEO Andy Jassy has made clear that the layoff wave is not in a panic or anything else, but the decision was driven by philosophy.  He said that the announcement that we made a few days ago was not really financially driven, and it’s not even really AI-driven, not right now, at least. He clarifies further that, “Really, it’s culture.” Recent media reports suggest that this was Amazon’s largest workforce reduction and the number could go to 30,000.

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What Andy Jassy Said? 

The layoffs were entirely due to a cultural mismatch, according to CEO Andy Jassy during the company’s quarterly earnings call on Thursday. According to Andy Jassy’s description, the change is part of a bigger initiative to make Amazon more flexible and less bureaucratic. During its pandemic-fueled expansion, the number of employees at the corporation increased threefold between 2017 and 2022. The price of that expansion has been significant, as per Jassy said.

AI really taking over? 

Only 11% of the corporate clients of Goldman Sachs investment bankers were actively firing workers as a result of AI, according to a survey conducted this week. However, about a third of businesses in the technology, media, and telecommunications sectors are cutting employees as a result of AI, highlighted by fortune.com

Do we really have to panic? 

Many people are suggesting that AI could take over and many people could lose jobs, but some say that this could really not happen. Therefore, right now we can see that there are many mixed reviews.