According to CNBC, Amazon CEO Andy Jassy announced the company is cutting about 14,000 corporate employees with more reductions expected soon. During Amazon’s recent earnings call, Jassy repeated his vision for Amazon to operate like the “world’s largest startup” by removing organizational layers. The CEO has been pushing this message since at least September when he addressed thousands of sellers in Seattle. Jassy took over from founder Jeff Bezos in 2021 and has been overhauling Amazon’s culture, including a hard push back to in-office work. The layoffs represent the starkest example of his efficiency-focused approach to running the e-commerce giant.
Sponsored content — provided for informational and promotional purposes.
The startup fantasy meets corporate reality
Here’s the thing about calling your 1.5 million-employee company a “startup” – it’s basically corporate speak for “we’re going to ask you to do more with less.” Jassy keeps using this line about being the world’s largest startup while simultaneously cutting thousands of jobs. And that’s where the messaging gets tricky. Startups are supposed to be about growth, innovation, and hiring – not mass layoffs and efficiency drives.
But look, I get what he’s trying to do. Amazon has become this massive bureaucracy over the years, and that inevitably slows things down. The company needs to stay nimble against competitors like Walmart and Shopify. Still, telling people you’re operating like a startup while you’re showing them the door? That’s a tough sell.
The bigger cultural shift
This isn’t just about layoffs. Jassy has been systematically changing Amazon’s culture since taking over. The return-to-office mandate was controversial, and now these cuts are shaking morale across the organization. He’s essentially trying to undo some of the bloat that accumulated during the pandemic hiring spree.
And honestly, the timing makes sense from a business perspective. The e-commerce boom has cooled, cloud growth has slowed, and investors want to see profitability. But here’s my question: can you really cut your way to innovation? Startups take risks and spend money to chase big opportunities. What happens when you’re so focused on efficiency that you miss the next AWS?
What comes after the cuts?
Jassy needs to show what all this efficiency is building toward. The “world’s largest startup” line would land better if he could point to specific new initiatives or growth areas. Right now, it just sounds like corporate restructuring with a fancy name.
The real test will be whether Amazon can actually move faster and innovate after these cuts. Or will they just become leaner and meaner while missing the next big thing? That’s the billion-dollar question Jassy needs to answer – and soon.
