Amazon layoffs spark debate: Are profits more Important than employees?
Amazon layoffs spark debate: Are profits more Important than employees?
Amazon's recent decision to lay off 14,000 managers has stirred a heated debate online, with startup founder Akshat Shrivastava questioning the tech giant’s priorities. Shrivastava, the founder of Wisdom Hatch, took to social media platform X (formerly Twitter) to highlight Amazon’s financial strength, pointing out that the company holds over $100 billion in cash reserves—its highest ever. Despite this massive wealth, the company still opted for job cuts instead of supporting employees.
Amazon just fired 14,000 Managers out of its 350,000 Corporate Employees.
— Akshat Shrivastava (@Akshat_World) March 18, 2025
As of early 2025, Amazon has surpassed $100 billion in CASH reserves for the first time in its history. This is crazy wealth.
If they invest in bonds with this @ 5%= they would make 5Bn$ in wealth.…
He argued that Amazon could invest in bonds at a 5% interest rate and earn around $5 billion annually. Even if they used a small fraction of that to help affected employees, each could receive $350,000, and the company would still maintain its financial cushion. “But they won’t do any of that,” Shrivastava wrote, sparking widespread discussion.
His post quickly went viral, with many agreeing that big corporations prioritize profits over people. “Companies will always choose money over employees,” one user commented. Others, however, defended Amazon’s decision, arguing that businesses must cut costs to stay competitive. “A company’s goal isn’t to provide lifelong employment. If they don’t manage expenses, they won’t survive,” another user wrote.
Beyond Amazon’s layoffs, Shrivastava pointed out a global issue: large corporations often receive tax breaks even after mass job cuts. He compared the job security situation in India and the U.S., noting that American workers have some form of social security, whereas Indian professionals face financial instability if they lose their jobs. Many agreed with his concerns, sharing that they look for opportunities abroad due to the lack of a safety net in India. “No one is there to save you,” he said, a statement that resonated deeply with many professionals.
Amazon Responds to Criticism
Amazon CEO Andy Jassy defended the layoffs, stating they are part of a broader plan to improve efficiency. According to a report, Jassy explained that reducing middle-management roles would help the company work faster and reduce bureaucracy. “When you add a lot of people, you end up with a lot of middle managers. And those managers, even with good intentions, want to leave their mark on everything,” Jassy told Bloomberg.
Amazon isn’t the only tech company making such changes. Other giants like Meta and Google have also been cutting middle-management positions to stay agile and competitive. As this debate continues, it raises larger questions about corporate responsibility, worker rights, and the widening gap between company profits and employee well-being.
