Analysts and industry observers agree that Amazon and AWS are preparing for another major round of layoffs, potentially impacting roughly 15,000 employees. While many point to “culture” as the underlying cause, there is growing debate over what that term actually means inside the company.
According to Reuters, Amazon plans to begin a second round of job cuts as soon as next week. These layoffs form part of a broader effort to eliminate around 30,000 corporate roles. In October, Amazon already cut roughly 14,000 white-collar jobs, representing about half of the total target.
Culture, Not AI, Drives the Cuts
Despite speculation around artificial intelligence, Amazon leadership insists that AI is not the primary factor. During Amazon’s third-quarter earnings call in October, CEO Andy Jassy stated that the layoffs are “not really financially driven” and “not even really AI-driven.” Instead, he attributed the decision to organizational culture.
Jassy explained that Amazon’s rapid growth over several years led to increased layers of management. As a result, ownership among employees doing the core work weakened. According to him, the company now needs to simplify structures and restore accountability.
Analysts See Long-Term Workforce Correction
Industry experts largely agree that these cuts should not come as a surprise. Scott Bickley, advisory fellow at Info-Tech Research, noted that Amazon previously forecasted total layoffs of around 30,000 roles.
Bickley added that Amazon operates less like a people-first enterprise and more like a highly optimized system. Before the pandemic, the company regularly removed underperformers. However, COVID-19 created unprecedented demand, forcing Amazon to hire aggressively across its business units.
Consequently, Amazon is still working to right-size its workforce. Meanwhile, the recent AI hype cycle may have delayed these corrections rather than preventing them.
AWS Slowdown Adds Pressure
Although AI is not directly replacing employees, analysts say market conditions still matter. AWS growth has slowed, and competition from rivals like Google has intensified. As cloud momentum softens, pressure to reduce costs increases, particularly in tech-heavy roles.
People familiar with Amazon’s operations emphasize that the AI market itself has cooled. Therefore, AWS no longer enjoys the same growth tailwinds that once justified rapid hiring.
Internal Pay Disparities Fuel Tensions
Mohan Mulund, a former Amazon director of product management, offered another perspective. While he agrees that culture plays a role, he argues the issue runs deeper.
According to Mulund, Amazon and other hyperscalers hired aggressively in 2020 and 2021. During that period, new employees often received higher compensation than long-tenured staff in similar roles. This disparity created frustration, especially among so-called “lifers” who have spent more than 15 years at the company.
As a result, internal dissatisfaction may now be influencing workforce decisions alongside broader organizational restructuring.
What Comes Next for Amazon Employees
With layoffs expected to begin soon, uncertainty continues to grow across AWS and other Amazon units. While leadership frames the cuts as cultural realignment, employees and analysts see a combination of overhiring, market slowdown, and internal tensions driving the outcome.
Ultimately, the situation highlights how even tech giants must recalibrate when rapid expansion meets changing economic realities.