Amazon CEO Andy Jassy is framing 14,000 corporate layoffs as a “culture” initiative, claiming the $2.4tn tech giant is trying to “operate like the world’s largest startup.”
Jassy told investors the cuts were “not really financially driven” or “even really AI-driven,” despite a company blog post that cited AI advancements. This defense came as Amazon reported blowout Q3 earnings that sent its stock up 9%.
The company’s financial health is robust, with $180.17bn in revenue. This was led by its AWS cloud division, which grew 20% to $33bn, its fastest pace since 2022.
The AWS success is a show of force, as it comes after a recent global outage that took critical systems offline. The division’s ability to beat revenue estimates ($33bn vs $32.42bn) highlights its market dominance.
While Jassy denied AI’s role in the cuts, he affirmed its role in future products. He touted the Rufus shopping assistant and Zoox robotaxis as key to competing in the AI arms race.