The Leadership Immunity

So, if the business is so strong, why the massive layoff?

The answer is simple, and it has nothing to do with “strengthening culture” or “increasing ownership.” It’s about increasing shareholder value.

Layoffs, especially during periods of high profit, are a well-worn tactic to immediately boost stock prices and profit margins. By cutting 14,000 salaries, benefits, and overhead, Amazon can present a more favorable balance sheet to Wall Street. It’s a direct transfer of stability from employees to investors.

This is the heart of the hypocrisy: Framing a decision made for financial markets as a necessary step for innovation and customer obsession.

While the memo speaks of shared sacrifice and a leaner future, it’s vital to ask: who is actually sharing in the sacrifice?

The executive who signed this letter, Beth Galetti, is not feeling this “leanness.” According to Amazon’s own regulatory filings, her total compensation for 2023 was nearly $14 million, the vast majority of which came in the form of stock awards.

Let that sink in.

The executive presiding over the elimination of 14,000 jobs—jobs that provided mortgages, healthcare, and stability for families—was rewarded with a compensation package worth over 300 times the median Amazon employee’s pay.

This is the ultimate hypocrisy. The “tough decisions” are not being made by people who face any financial insecurity. Their multi-million dollar packages, tied directly to stock performance, incentivize short-term cost-cutting like mass layoffs. For them, “strengthening the organization” means boosting the metrics that directly inflate their own net worth.