Amazon India has clarified that the recent round of job cuts in the country is not fundamentally about cost-cutting, but rather part of a broader organisational restructuring aimed at simplifying its internal structure.
Amit Agarwal, Senior Vice President for Emerging Markets, stated that these layoffs, affecting roughly 800-100 employees in functions, are a result of an organizational effort to reduce layers and enable an elastic workplace.
In October 2025, Amazon India announced an overall global layoff of 14,000 employees, and these layoffs are a consequence of the same. Although there have been theories ranging from cost-cutting to AI taking over human jobs, Amit Agarwal clarified the real reason in an interview with The Economic Times.
He mentioned, “To operate that way, we need fewer layers. The layoffs are primarily about eliminating those layers, and we will continue that because we want to be lean and start-up like.”
Similarly, Andy Jassy talked about these layoffs with analysts, saying that these were not ‘financially driven’ and not due to AI deployment, but because they wanted more agility and simplicity within the structure. According to Jassy, these layoffs would help reduce bureaucracy within Amazon.
Amazon will continue hiring in fundamental domains with a high demand. Recently, they committed tens of billions of dollars to India through 2030 as a promise to support digitization, exports, and employment. Notably, it stood firm in joining forces with India and made massive efforts to realize its contribution.
According to market analysts, this trend aligns with the tech industry as a whole. Companies in the sector are reorganizing their structures to better cope with the rapid changes driven by AI adoption.