Amazon just explained why it laid off 14,000 workers. ItтАЩs not what you expected

In a recent earnings call, Amazon's CEO Andy Jassy shed light on the company's decision to lay off 14,000 employees, stating that the driving factor was not financial constraints or advancements in artificial intelligence, but rather the company's internal culture. Jassy emphasized that the layoffs were not primarily motivated by financial needs, noting that Amazon saw a 13% year-on-year increase in quarterly sales, reaching $180 billion. Instead, he pointed to the complexities that arose as the company expanded its workforce and business operations over the years. "As Amazon grew, we ended up employing a lot more people and introducing additional layers of management, which can dilute the ownership and accountability of those doing the work," Jassy explained. With the workforce peaking at over 1.6 million in 2021 and finishing last year with about 1.5 million, he highlighted the challenges this growth has presented. The CEO expressed the need to streamline operations, stating, "We are committed to operating like the world’s largest startup, which means removing unnecessary layers." While the company framed the layoffs as a strategy to remain agile in anticipation of future efficiencies brought about by AI, concerns about technology displacing human jobs have intensified. Following the earnings report, Amazon's stock saw a significant boost, climbing 13% in after-hours trading, reflecting investor optimism despite the looming layoffs.