The problems at retail giant Amazon have been laid bare in a leaked audio of boss Andy Jassy speaking to his staff. But as well as being brutally honest about the headwinds facing the business, the CEO laid out a roadmap for the company's success.
In an internal all-hands meeting on Tuesday, Jassy said turning the company around will take "many months" and moves will likely be "misunderstood" by the market, according to a recording of the meeting reported by Insider.
Jassy's words come after Amazon confirmed in January that 18,000 workers will see their roles eliminated across the U.S., Canada and Costa Rica. Retail chief Doug Herrington said the cuts had been made to lower costs: “so we can continue investing in the wide selection, low prices and fast shipping that our customers love.”
In the recording obtained by Insider, Jassy reportedly said: "This is not work that's going to take one or two months, you know, we're going to make progress, meaningful progress every month, but this will take many months, and I'm quite confident that we will be misunderstood and we will be underrated."
His pep talk also called on his colleagues to pull together to "redefine" the brand. In a response to a question from an employee about both cost cutting and investments in recent months, Jassy said this "isn't the first time" the company has been through this sort of transformation, and it won't be the last.
Addressing staff as owners of the brand—a principle at the core of the Amazon's strategy—he added that they all needed to focus "squarely on delivering for customers and realizing [...] that we all have a piece of making this happen".
He added he was confident they would deliver and "redefine" what is to be Amazon, insisting the company's best days are "unquestionably" ahead. He added: "I look forward to making that happen with all of you."
And despite hiring freezes Jassy reaffirmed his commitment to "breathtaking innovations" such as healthcare, Project Kuiper broadband, Zoox autonomous vehicles, entertainment and more. "I don't really know any other company that's pursuing a set of innovations like that," he said.
The 3 things Amazon staff were asked to do
In order to ensure the company's bright future Jassy called on employees for their buy-in across a range of subjects—with many of the themes already well-known to staff.
Jassy continued to encourage workers to think of themselves as "owners" of the business, urging them to work closely as a team and keep cost-cutting principles at the front of their mind. He asked them to be "speedy and insurgent" to keep ahead of competition.
Focus is also key, he added, saying a reduction in hiring should free up time "to be more productive". And lastly he called for renewed "customer obsession"—a phrase often touted by the company's leadership team—as he believes the shake-up offers an opportunity to "reprioritize and rethink" what matters to shoppers.
He sought to reassure his remaining employees that their leadership team has a plan: "I know that this is and feels like a really difficult time. For any leadership team and for all of us as a group, we always have to look at what's going on around us in the macro economy as well as in our businesses."
Amazon did not immediately respond to request for comment when approached by Fortune.
