Amazon's Major Reset: The Story Behind the Company Laying Off 14,000 Employees — The Real Reason for the Reorganization

Amazon has finally explained the real reason behind its massive layoffs in October 2025, which saw nearly 14,000 employees lose their jobs worldwide. Contrary to widespread speculation, the cuts were not driven by artificial intelligence replacing roles or by financial pressure, but by a major internal cultural overhaul.

Speaking during a recent earnings call, Amazon CEO Andy Jassy said the restructuring was aimed at restoring speed, ownership and agility within the company. “This wasn’t about money or AI. It was about culture,” Jassy stated, adding that years of rapid global expansion had created too many management layers, slowing decision-making.

In a separate interview with The Economic Times, Amit Agarwal, Amazon’s Senior Vice President for Emerging Markets, said the layoffs were part of an effort to help Amazon function more like a startup. “To operate with startup energy, fewer layers are needed. The workforce reduction was about making the organisation lean and fast,” Agarwal said.

The October job cuts impacted nearly one-tenth of Amazon’s white-collar workforce. In India, around 800 to 1,000 employees across finance, marketing, HR and technology roles were affected. Despite the layoffs, Amazon has confirmed that hiring will continue in business-critical areas.

Jassy also clarified that the restructuring was necessary to prevent leadership layers from weakening accountability among teams. According to him, simplifying the organisation would empower employees closer to the work to take stronger ownership and make faster decisions.

Alongside internal changes, Amazon is reshaping its India growth strategy, particularly in the fast-growing quick-commerce segment. While competitors like Blinkit, Zepto and Swiggy Instamart are expanding city by city, Amazon is focusing on regions with high concentrations of Prime members.

“Our approach is not city-led,” Agarwal said. “We look at clusters where Prime members are already active, so we can serve them better and faster.” This Prime-first strategy could help Amazon compete more effectively in India’s crowded quick-commerce market.

With fewer organisational layers, a renewed cultural focus and targeted investments in AI and logistics, Amazon is positioning itself for another phase of transformation—one that blends startup-like speed with global scale