Amazon announced 14,000 layoffs this week, but the reason behind it is neither cost-cutting nor a bet on AI, but rather "cultural" considerations.

According to Business Insider, Amazon CEO Andy Jassy addressed the layoffs for the first time during Thursday's quarterly earnings call, stating, "The decision a few days ago was not based on financial pressure, nor was it influenced by AI—at least not yet. The real reason is corporate culture."

Jassy has been working to reshape Amazon's corporate culture in recent years, hoping to make the company more efficient by raising performance requirements, strengthening management discipline, and reducing internal bureaucracy. This week's layoffs are reportedly Amazon's largest personnel change since the 27,000 layoffs at the end of 2022.

Jassy pointed out that Amazon's rapid expansion in recent years has led to excessive layers of management, resulting in decreased decision-making efficiency. He emphasized that against the backdrop of AI-accelerated change, companies need streamlined structures and rapid action more than ever before.

He added, "Sometimes, people may not realize it, but too many organizational layers can undermine the sense of ownership among the employees who actually do the work, thus slowing down the overall pace."

Amazon is not an isolated case. Other tech giants like Google and Microsoft are also pushing for "flattened" management structures, hoping to shed bureaucratic structures and enable teams to move more quickly.

Furthermore, Amazon revealed that the layoffs last quarter are expected to cost approximately $1.8 billion in severance pay. The company previously stated that this week's layoffs were a proactive decision because AI is enabling the company to "drive innovation at an unprecedented pace."