Direct answer: Amazon is laying off employees primarily to tighten costs and streamline the organization in response to overstaffing during the COVID-19 demand surge, and to position the company for broader deployment of AI and other “leaner” operating practices. The company has publicly stated the goal is to remove layers of bureaucracy, increase ownership, and reallocate resources toward its strategic bets, including generative AI. Reports indicate the cuts span corporate and technology roles and are part of a multi-stage effort that could total up to tens of thousands of positions, with earlier public notes highlighting the ongoing effort to become more efficient after rapid hiring during the pandemic. The exact numbers cited in various outlets have ranged, but the core rationale remains cost reduction, organizational simplification, and investment focus on AI initiatives.