Amazon has recently released its financial results for the third quarter, indicating a strong performance despite recent staff reductions. The e-commerce giant generated $180.2 billion in revenue from July to September, marking a 13% increase compared to the same period last year. Notably, its cloud division AWS experienced significant growth, with a 20% rise to $33 billion since 2022. Following the announcement, Amazon’s stock surged by 13% in after-hours trading.

Despite the company’s impressive performance, questions arose regarding the decision to cut 14,000 corporate positions and the possibility of further downsizing. During an earnings call on Thursday evening, CEO Andy Jassy clarified that the layoffs were not primarily driven by financial concerns or artificial intelligence (AI) initiatives at present but rather by a focus on company culture.

Jassy explained that Amazon’s rapid expansion in recent years led to increased complexity and decision-making challenges within the organization, resulting in diminished accountability among frontline employees. To address these issues and adapt to ongoing technological advancements, Amazon aims to streamline its operations and foster a more agile working environment resembling that of a startup.

The internal memo distributed to affected employees echoed Jassy’s sentiments while emphasizing the importance of embracing AI technology for innovation and competitiveness. Despite these workforce adjustments, Amazon remains committed to leveraging AI and cloud capabilities to enhance operational efficiency and drive future growth.

Looking ahead, Amazon is poised to continue investing in AI and automation technologies to optimize its operations further. The company’s robotics team aims to automate 75% of its functions, potentially impacting not only corporate roles but also broader workforce dynamics in alignment with industry trends towards increased reliance on AI-driven solutions.