Andy Jassy, CEO of Amazon, Talks About 27,000 Job Losses, AI, and More

In the annual letter to shareholders, Amazon CEO Andy Jassy discussed the challenging year the company had. He talked about the “hard decision” he made to fire 27,000 workers to minimize costs and implement other steps for the platform’s expansion.

In the second round of layoffs, which occurred this past month, 9,000 employees were let go by Amazon. The corporation lost 18,000 jobs in the initial phase. Jassy asserted in a letter to the staff after the most recent layoffs that the choice “is best for the organization’s long term.”

Notably, Amazon provides these staff members with severance money, temporary health insurance advantages, and assistance with finding outside employment.

He said that to determine whether the company had “confidence about each initiative’s potential for the future to drive sufficient revenue, earnings from operations, free cash flow, as well as a return on investment capital,” it had to take a “deep look across the corporation, company by company, and innovation by the invention.”

The greatest mass layoff in Amazon’s history occurred during this time. Jassy thinks Amazon’s finest days are still ahead of the firm despite this. He added that to reduce expenses, Amazon has to close multiple physical shops, companies, Amazon Fabric, which was and its care initiative. A minimum of three days a week in official attendance will now be required starting in May, he added in his announcement.

Amazon prioritizes AI

The CEO of the business mentioned investing considerably in the recent upsurge in demand for AI tools. The business is constructing its large language models. (LLMs). According to Jassy, they have been treated as constructing their LLMs for quite some time now. They believe it will completely change and improve nearly every customer work experience and intend to keep investing significantly in such approaches throughout all of our creator, brand, seller, and customer experiences.