Tech

What Amazon's layoffs mean for the rest of corporate America

Amazon CEO Andy Jassy
Amazon CEO Andy Jassy Noah Berger/Noah Berger
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16,000 jobs down. How many more to go?

The sequel to Amazon's mass layoffs last fall came yesterday with another round of deep job cuts. I'd love to tell you it's an isolated incident, but it feels representative of a broader shift across tech and corporate America.

AI is ushering in a new era for workplaces, and companies are adjusting accordingly. As the ones closest to the tech (and spending the most on it), Big Tech would be the first to evolve. Make no mistake: Where Big Tech goes, the rest of the business world will likely follow.

So what can we glean from Amazon's layoffs? Fortunately, my colleagues Eugene Kim and Ashley Stewart are crushing it with scoops. Their stories provide context about Amazon's decision and how that translates to your own workplace.

Let's dive in:

No one is safe: Internal Slack messages Ashley viewed show how many teams were bitten by the layoff bug. That includes businesses within AWS (its AI cloud service and cloud data warehouse service) and Amazon's retail business.

One Amazon worker used an AI tool to flag roles on the chopping block. That list is even broader, although it may contain inaccuracies since it's AI-generated. Another noticeable trend is how software engineers got hit particularly hard, as has been the case in tech recently.

Own it: After a not-so-hot start, Amazon has coordinated its post-layoffs communications. And there's one word that keeps cropping up: ownership.

Prasad Kalyanaraman, VP of AWS Infrastructure, and Colleen Aubrey, SVP of Applied AI Solutions, both described "doubling down on a culture of ownership" in memos Ashley viewed. That sentiment, coupled with the changes Eugene reported on in performance reviews, signals that the further away you are from doing the actual work, the more at risk you are.

AI can be a friend as much as a foe: Artificial intelligence often takes a lot of blame for why jobs are getting swallowed up. A memo from AWS VP Greg Pearson that Eugene viewed paints a different picture.

He urged workers to "keep finding ways to use technology to simplify our work." It's something I heard a lot of last week when chatting with execs: "AI won't take your job, but the person willing to use it will."

Make change, don't manage it: I'm not a tech career coach (I'll leave that advice to this guy), but the layoffs, coupled with CEO Andy Jassy's ongoing war against bureaucracy, indicate a desire to get more people rolling up their sleeves.

It's reminiscent of a recent convo I had with Cisco president and chief product officer Jeetu Patel. He stressed the importance of figuring out the change you want to make and working toward it, rather than focusing on a job title.

"If in the pursuit of that change, you have to go out and reluctantly manage some people, then go ahead and do that," Patel told me. "But management, in and of itself, is not a full-time job."

Dan DeFrancesco
Dan DeFrancesco
Dan is the lead writer for BI Today, Business Insider's flagship daily newsletter. Sometimes he interviews executives about everything from AI's impact on capitalism to robotics to the potential SaaSpocalypse. Sometimes he makes Mad Libs for AI-driven layoff announcements.Dan previously covered financial technology and market structure for BI as a reporter and editor. His work includes everything from inside Robinhood's failed "Checking and Savings" product that eventually led to Congress getting involved to the internal arguments over JPMorgan's failed attempt to launch a finance app for millennials.Before joining BI, Dan wrote about derivatives and commodities for Risk.net and fintech for WatersTechnology. If you played high school sports in the lower Hudson Valley between 2012 and 2014 there's a good chance he wrote about you during his first real journalism job at The Journal News. Got a tip? Contact this editor via email at ddefrancesco@bjinnox.com.