Amazon CEO Andy Jassy says that the corporate’s newest spherical of layoffs that impacted barely 14,000 individuals isn’t due to cash or AI. As an alternative, the actual cause behind Amazon job cuts is the tradition, Jassy stated. “The announcement that we made a couple of days in the past was not likely financially pushed, and it is not even actually AI-driven, not proper now at the least,” he stated as quoted by Enterprise Insider. “It actually — it is tradition.”“And in case you develop as quick as we did for a number of years, the scale of companies, the variety of individuals, the variety of places, the kinds of companies you are in, you find yourself with much more individuals than what you had earlier than, and you find yourself with much more layers,” Jassy defined. “And when that occurs, Typically, with out realizing it, you may weaken the possession of the individuals that you’ve got who’re doing the precise work,” he added. “And it will probably result in slowing you down.”In a weblog put up dated October 28, Amazon’s senior vice chairman of individuals expertise and know-how, Beth Galetti introduced that the e-commerce firm is “making organizational modifications throughout Amazon that may impression a few of our teammates.” “Whereas this can embrace lowering in some areas and hiring in others, it should imply an general discount in our company workforce of roughly 14,000 roles,” she stated.Amazon’s newest job cuts is the corporate’s largest layoff since 2022 when the corporate laid off 27,000 positions. Jassy’s remarks contradict what Amazon government has been saying concerning the job cuts.Within the weblog put up, Galetti defined “This technology of AI is probably the most transformative know-how we’ve seen because the Web, and it is enabling firms to innovate a lot quicker than ever earlier than (in current market segments and altogether new ones). We’re satisfied that we have to be organized extra leanly, with fewer layers and extra possession, to maneuver as rapidly as attainable for our clients and enterprise.”Individually, Tapas Roy, vice chairman of machine software program and companies despatched a company-wide electronic mail this week saying the corporate is chopping roles inside its OS & Companies staff and requested remaining employees to “lean in on AI.”