He told me that he had worked to develop a tool that would replace effectively all of the middle management function that he was responsible for: gathering information from folks below him, distilling it down and reporting that to people above him.
His hope was that he would be retained to maintain the system that he built, knowing that every other manager at his level was going to be terminated.
It felt like watching someone who is about to be executed be responsible for building the gallows. He should’ve been so aware that his job was going to be the first one cut, and he was responsible for building a tool to cut his own job. But he was optimistic that the cuts wouldn’t come for him
Makes me wonder how he’s doing today
I was an L7, I led global AI enablement. I built systems executives depended on, moved wherever the company needed me and fixed problems that had been sitting untouched because no one else could untangle them.
And I was still cut.
Here’s the part we’re all supposed to politely ignore: in the U.S. right now, experience isn’t an asset, it’s a liability. And if you’re expensive because you’re good at what you do, the system eventually “optimizes” you out.
We're now in the realm of hold onto your nuts -- sink or swim -- ownership of your own company is the only way out
"Nintendo CEO’s refusal to layoff staff goes viral following industry-wide cuts"
https://www.nme.com/news/gaming-news/nintendo-ceos-refusal-t...
I realize these companies aren't identical, but interesting to compare approaches. I also expect Amazon hires and fires more easily instead of growing more slowly and steadily.
https://techcrunch.com/2025/12/10/amazon-to-invest-additiona...
- October 2025: Amazon cuts 14k jobs
- December 2025: Amazon announces additional 35b USD investment to India (total 75b USB by 2030); promises to create ~1m jobs there
- December 2025: Random H1B lottery is dismantled, giving preference to higher company salary spending e.g. the more salary H1B applicant would receive, the better the chances
- January 2026: Amazon cuts 16k additional jobs (30k jobs cut in total)
You really don't have to be a detective to figure out that this has nothing to do with AI.
Their stock will go up the next year or two only because of their luck of partnering with Anthropic (back when they were a distant second choice to OpenAPI)
Leadership can’t even gets its story straight about why… “It’s AI” correction “Pandemic over-hiring” correction “delayering” correction “restoring our culture” correction “actually AI!”.
There’s a whole mess of rando projects and teams with bloated management layers and often little to show for it revenue wise.
While on the one hand it’s obvious that mess needs to be cleaned up, on the other hand the top leadership has been in place for a while so the very people that created/oversaw the mess are struggling to position themselves as the one to fix it. That seems unlikely to work and the best talent in areas like AI seems to be fleeing voluntarily.
Everything I hear from the inside says moral is in the toilet and the once proud “culture of innovation” is in shambles with teams focused on politics, infighting, and endless reorgs.
Frankly, sounds like a s*itshow and what Jeff Bezos predicted as “Day 2” for the company’s eventual slow decline.
Amazon spent a lot of time and money and built a top-tier workforce. But now they are out of ideas for what these people can do? They don't have any untapped opportunities left? No projects that never quite made it to the top of the stack? No deferred maintenance that could be taken care of now?
Crazy most of it is programmers (and/or various other white collar jobs) tbh
> RTO to Seattle / Bay Area to a dingy condo , with diligence , at enormous personal expense
> Laid off a 18 mo later. CEO says "i'm taking responsibility" , no responsibility taken.
Alternatively they may be using AI in HR as part of the decision making, and it's made the determination that these folk can go "because of AI" based on past firings and performance since then.
Though, I think the title is a bit of a misnomer here. In part the axing of jobs was done to reduce costs; now AI also may relate here or be even a main driver, but I think the title oversimplifies it a bit.
But imagine you're one of the people who remain (e.g., not impacted by the eliminated companies or products) and now there are fewer people to do the same amount of work? I've seen that movie and it usually has an economic impact 6-9 months later when people burn out.
It's almost like you can write the script:
Month 0–3: Survivors are relieved, grateful, and over-perform. Leadership reads this as “proof the cuts worked.”
Month 3–6: Context loss shows up. Decision latency increases. Domain knowledge walked out the door.
Month 6–9: Burnout, attrition, and quality failures begin. The “hidden layoffs” start as top performers quietly leave.
Month 9–12: Rehiring or contracting resumes (usually at higher cost)
The key misunderstanding here is assuming AI substitutes for organizational slack and human coordination. It doesn’t.
And sometimes middle management "bloat" is misdiagnosed. Remove them without redesigning decision rights and workflows, and the load doesn’t disappear it redistributes to the IC's.
Watch for Amazon "strategic investments" in early Q4 2026 (this will be a cover for the rehiring).
https://h1bgrader.com/h1b-sponsors/amazon-dot-com-services-l...
Yet another round of layoffs being blamed on AI. As with last time, this is not due to productivity gains from AI, rather it's due to wanting to reallocate budget towards investing in AI. (and maybe an excuse for something they already wanted to do)
I think some productivity gains from AI are real, and I've experienced some firsthand, but reductions in force being ENABLED by AI are not, and I don't think we will see much of that for a good while still.
AI is attracting a lot of investment dollars because it's seen as disruptive; the capabilities it potentially unlocks for people are enormous. The problem is that general intelligence is still far away (fundamentally cannot be reached with the current approaches to AI, in my opinion), and the level of investment required is so high that the only way folks are getting that money back is if it does enable a level of layoffs that would be crippling to the economy.
Additionally, there is not a huge difference between the top models, and thanks to the massive investments the models are incrementally improving. It seems obvious from the outside that AI models are going to be a commodity, and good free models put downward pressure on prices, which they are already losing money on. So I think it's going to be a race to the bottom, and is very unlikely to be a winner-takes-all situation.
I think this means that the reward for big tech companies pouring insane amounts of money into AI will be maintaining their current position, or maybe stealing a bit of business from each other. That's why I think AI is more of a tax on big tech than a real investment opportunity.
Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan.
> In-office work is now mandatory five-days a week, making Amazon one of the only major tech companies to require its employees to be in the office full-time.
With this kind of employee hostile policies and threat of job cut, how does it manage to be the A of FANG (or as they call it, MANGA)? But apparently people still want to get a job there? The pay is a little less than other companies in the same league. So pay can't be the reason. Or is it? Honestly want to know what it is that make IT people get a job there?
I'd say your risk of losing your livelihood is higher as a simple employee than as a CEO when we're talking about post-startup companies.
I personally haven't bought anything from Amazon or Ebay in 4 years, and will never again. I only buy local, or I don't buy. Starving the beast one purchase at a time.
Except that’s been Jassy’s number one tool to try and get the stock price moving.
I think and I know HN commentators are going to hate this, but Thiel was right when he wrote that the current system only works with fast continuous growth. Ideally multiple growing sectors, contributing to the economy. Anything else, and everyone immediately starts fighting for scraps joining their tribal identity or whatnot. The only way out, would be more rapid growth in multiple sectors, not just AI, or a complete breakdown of the existing system which does not leave me hopeful for anything better. I in fact like the existing system quite a bit, but maybe that’s just me.
They’d scale to zero if they could!
Companies, be they highly profitable global conglomerates like Amazon or smaller Mom and Pop shops, have zero incentive whatsoever to retain staff. None. In fact, they have every incentive to axe as many workers as possible, as often as possible, profit be damned. So long as governments and shareholders reward job cuts with stock price or compensation bumps, this trend will continue.
To simplify: we have built a global society where 99% of people must work to survive but have zero mandates that employers provide jobs with livable wages and benefits. That is, and will remain, the crux of the issue at hand.
I don’t think it’s a controversial idea to impose broad and lenient regulations on companies to prevent this sort of activity. Made a profit last year? No layoffs allowed without a year’s worth of severance and benefits is such an immense deterrent that most employers will find ways to repurpose staff internally rather than fire them for a quick share bump - though with the consequence of slower hiring, as companies don’t want to be burdened with too much unnecessary talent. There are literally hundreds of policy ideas out there that nobody wants to pull because it’d inconvenience Capital, but we’re at a crossroads where we either mandate Capital behave with the barest of minimums of decency and respect for the workforce they mandate exist through Capitalist markets, or we break their arm outright and tax the absolute shit out of them to provide a high quality of life for every worker regardless of present employment.
Right now, they get to keep all the money while outsourcing risks to the workforce, and all that’s done is create shit like this: thousands let go not out of business need, but of business greed.
Before the layoffs were announced Amazon also committed to expanding hiring and infra expansion in India [3], and depending on the org, affected employees on work visas were offered transfers to India in lieu of being laid off [4].
The Trump admin won't do anything about offshoring either - in fact technology transfers to India are being encouraged by the admin as part of Pax Sillica [5] and GOP leaders in Purple Ag states like Iowa [6] and Montana [7] are lobbying for India after China pivoted away from American soybeans [8] and India began leveraging the China playbook [9].
When forced to choose between swing state farmers and GOP leaning SWEs, it's going to be the farmers who win.
[0] - https://www.pbs.org/newshour/politics/trump-signs-proclamati...
[1] - https://www.bloomberg.com/news/newsletters/2025-09-25/a-100-...
[2] - https://www.reuters.com/sustainability/sustainable-finance-r...
[3] - https://www.aboutamazon.in/news/economic-impact/amazon-econo...
[4] - https://www.reddit.com/r/amazonemployees/comments/1qfesvs/6_...
[5] - https://x.com/USAmbIndia/status/2010718052992618815
[6] - https://governor.iowa.gov/press-release/2025-09-07/gov-reyno...
[7] - https://www.daines.senate.gov/2026/01/20/daines-travels-to-i...
[8] - https://www.reuters.com/world/china/china-favour-brazilian-s...
[9] - https://www.cramer.senate.gov/news/press-releases/cramer-dai...
So many products turned into feature mill factories. If things can get more concentrated and directed, then I think this will be better for all in terms of finding their true purpose in life.
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