Amazon's Major Reset: The Story Behind the Company Laying Off 14,000 Employees — The Real Reason for the Reorganization
The top management of Amazon reveals the true reason that led to the huge 14,000 layoffs in 2025. Understand why the tech giant is transforming itself into "the biggest startup", what CEO Andy Jassy means by a culture-driven restructuring, and how India's quick commerce plans are a part of the company's future.
image for illustrative purpose
Amazon is taking a leap with one of its most daring transformations in history. After getting rid of approximately 14,000 workers in October 2025, the firm has decided to reveal the real reason for its drastic internal restructuring.
The redundancies, which have been widely acknowledged as a consequence of AI taking jobs or extreme cost-cutting measures were, in reality, an all-embracing revamping of the company's culture, which according to Amit Agarwal, the Senior Vice President of Amazon for Emerging Markets, was aimed at making the company operate with the speed and agility of a startup.
In a one-on-one interview with The Economic Times, Agarwal said that the restructuring, in fact, was meant to cut off the extra layers that were making decision-making slow.
“Fewer layers are needed to work like a startup. The cuts in the workforce were merely the softening of those layers so that we can be slim and fast," Agarwal stressed.
He further revealed that Amazon would be continuing to hire in the areas considered crucial, notwithstanding the layoffs.
14,000 Layoffs: A Different Story?
The layoffs in October affected nearly one-tenth of Amazon's white-collar workforce, with India facing an estimated 800 to 1,000 job losses in the finance, marketing, HR, and tech functions.
Amazon characterized these cuts as part of a broader vision to keep the organization light during a time when rapid technology changes, especially in AI and digital engineering, are first to second.
Andy Jassy: “This wasn’t about money or AI. It was about culture.”
Recently, during the company’s quarterly earnings call, Amazon CEO Andy Jassy openly discussed the restructuring matters.
He made pointblank that:
The layoffs were not due to financial downsizing or the replacement of manpower with AI — at least not yet.
"The announcement...was not based on financial grounds, and it’s not really AI-driven, even at this point,” Jassy stated. “It’s all about culture.”
Jassy asserted that the years of rapid growth — new markets, new businesses, more employees and locations — brought about too many organizational layers within the company.
When this occurs, he cautioned, leaders may unintentionally hamper the sense of ownership among the workers who are actually doing the work.
The restructuring is supposed to rectify just that.
Amazon’s India Strategy: Quick Commerce with a Turn
Agarwal also pointed out that more Indian cities are coming on Amazon's radar for quick commerce, although Swiggy Instamart, Blinkit, and Zepto are currently the main players in the area.
However, Amazon is not imitating the rivals with a city-by-city structure.
Rather, the spotlight is on areas where Prime members are concentrated.
“Our outreach is not determined by cities; it is based on the clusters where Prime members are in large numbers,” Agarwal replied. “We want to get the largest proportion of our Prime members.”
This tactic might enable Amazon to have a competitive advantage by catering to those customers who are already very much hooked to its ecosystem.
An Amazon with the Energy of a Startup but Leaner
After shedding the organizational layers and reviving the cultural purpose, Amazon is ready to act like a startup — even though it's one of the biggest companies on the planet.
With the renewed focus on AI, the shift in internal culture, and its fresh quick-commerce strategy in India, Amazon has set itself up for another decade of rapid transformation.
