After weeks of media speculation about looming layoffs, Amazon told workers it would begin eliminating 14,000 corporate jobs in a plan to establish a leaner organization driven by the evolution of artificial intelligence.
In a web post, Beth Galetti, Amazon senior vice president of people experience and technology, said organizational changes are in line with an earlier statement by CEO Andy Jassy about the need to return the company to the lean, entrepreneurial approach that was a hallmark for much of its existence.
Galetti pointed to the statement Jassy released last year also addressed strengthening culture and teams and operating as what Jassy called the world’s largest startup. To accomplish that, Galetti said, Amazon needs a structure that focuses on speed and ownership while promoting invention, collaboration and connection so it can best serve customers.
The planned job reductions at Amazon will further reduce bureaucracy, remove management layers and shift resources to allow investment in operational priorities and what matters most to Amazon customers now and in the future, Galetti said.
In explaining the planned layoffs, Galetti said the latest generation of artificial intelligence is the most transformative technology the company has seen since the Internet arose, and it is enabling businesses to innovate much faster than ever before in existing and new market operations. As it confronts the new environment, Amazon management is convinced the company needs a leaner organization with fewer layers and more ownership to move as quickly as possible for customers and the business, Galetti said.
