'Brutal world, fend for yourself': Startup founder calls out Amazon for layoffs despite $100 billion cash reserves

Amazon's latest layoffs have sparked a heated debate after Wisdom Hatch founder Akshat Shrivastava called out the tech giant's massive cash reserves and its approach to job cuts. Shrivastava, in a social media post, pointed out that Amazon recently fired 14,000 managers while sitting on over $100 billion in cash reserves for the first time in its history.

“This is crazy wealth,” he wrote, stressing that Amazon could invest in bonds at 5% interest, earning $5 billion in wealth. Instead, Shrivastava argued, “They could potentially pay $350,000 to each fired employee, let them keep their jobs, and still maintain that $100B cash reserves. But, they won’t do any of that.”

'No one is there to save you'

Shrivastava also took a broader view of the global corporate and economic landscape, highlighting that companies like Amazon benefit from tax breaks worldwide despite mass layoffs. He stated, “In fact, they would get tax breaks from governments across the world. Why? Because we live in a brutal world: every person has to fend for themselves.”

Comparing the situation in the US and India, he noted that American workers at least have some level of social security, whereas in India, losing a job could mean financial devastation. “If for some reason you can’t find a job for five years, you could end up on the road,” he cautioned.

This, he said, explains why many Indians focus on building personal wealth, moving abroad, and saving on taxes. “If you see a fellow Indian being selfish to survive, he/she is doing nothing wrong. No one is there to save you,” Shrivastava asserted.

Amazon's middle-management shakeup

The layoffs are part of Amazon CEO Andy Jassy’s ongoing strategy to streamline operations, which includes cutting middle managers to improve efficiency. Jassy initially aimed for a 15% reduction in managerial roles by Q1 2025 but has already surpassed that goal.

Explaining the move, Jassy told Bloomberg, “You add a lot of people and you end up with a lot of middle managers. And those middle managers, all well-intended, want to put their fingerprint on everything.”

The restructuring means Amazon will have fewer bosses, with employees expected to manage themselves. The company’s shift aligns with broader industry trends, as tech giants like Meta and Google also cut middle-management layers to boost agility and reduce inefficiencies.