Amazon.com, Inc. (AMZN) Stock: Layoffs and Lawsuit Put Spotlight on Company Culture

TLDR

• Amazon (AMZN) traded at $238.67, down 2.26% as of early Thursday afternoon.
• The company laid off 660 employees across nine New York City offices, effective November 8, 2025.
• CEO Andy Jassy said the cuts are driven by company “culture,” not AI or cost pressures.
• A new lawsuit accuses Amazon of punishing disabled employees for requesting accommodations.
• Amazon denies wrongdoing, stating it prioritizes employee well-being and safety.

Amazon.com, Inc. (NASDAQ: AMZN) shares dropped 2.26% to $238.67 as the company initiated another round of layoffs in New York, affecting 660 corporate employees across nine offices.

Amazon.com, Inc., AMZN

According to a Worker Adjustment and Retraining Notification (WARN) filing, the layoffs took effect on November 8, 2025, impacting locations across Manhattan including 7th Avenue, 10th Avenue, and 34th Street.

The company described the move as part of a restructuring effort designed to streamline operations and align with evolving business priorities. A spokesperson told USA Today that the cuts aim to improve efficiency and align teams with long-term objectives. The specific departments affected were not disclosed, though industry observers speculate the reductions focused on corporate roles.

CEO Andy Jassy Clarifies Motivation Behind Job Cuts

During the company’s latest earnings call, CEO Andy Jassy addressed speculation surrounding Amazon’s ongoing job reductions. Jassy emphasized that the layoffs were not financially motivated nor linked to artificial intelligence, but rather stemmed from the company’s cultural evolution.

“It’s not really financially driven, and it’s not even AI-driven,” Jassy said. “It really,  it’s culture.” He added that Amazon’s rapid growth had introduced excess layers and complexity, weakening ownership among teams. The move, he explained, is part of restoring accountability and maintaining agility within the organization.

Lawsuit Alleges “Punitive” Treatment of Disabled Workers

In a separate development, Amazon was hit with a proposed class-action lawsuit alleging discriminatory treatment of disabled employees. The complaint, filed in federal court in Manhattan, claims the company enforces a “punitive absence control system” that penalizes workers for taking unpaid leave, even when protected by law.

Lead plaintiff Cayla Lyster, a warehouse employee near Syracuse, said she suffers from Ehlers-Danlos syndrome and was placed on unpaid leave multiple times while waiting for accommodations such as a chair and reduced climbing duties. The lawsuit claims supervisors intimidated her and other employees with emails demanding justification for absences under threat of termination.

Amazon’s Response to Allegations

Amazon spokesperson Kelly Nantel denied the claims, stating that “ensuring the health and well-being of our employees is our top priority.” She asserted that the company provides a “safe and supportive environment” and complies with all disability and employment laws.

This case follows a recent lawsuit from the New Jersey Attorney General, which accused Amazon of denying accommodation requests to pregnant and disabled workers,  allegations Amazon also denied, noting it approves over 99% of pregnancy-related requests.

Outlook

The twin developments, job cuts and legal scrutiny,  highlight ongoing challenges in Amazon’s corporate structure and labor relations. As the company balances operational efficiency with employee welfare, investor sentiment remains cautious.

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