Amazon Memo Urges Engineers to Prioritize Value Over Token Usage

Amazon made a strategy shift public on Tuesday via a note to engineering teams. The memo, written by VP and distinguished engineer Terk Terkowitz, states that neither the developer role nor their output is defined by the use of AI. Amazon wants developers to blend AI tools with human judgment and domain expertise. The company argues that using token-based metrics as targets could drive negative outcomes, increasing costs and complexity. An Amazon spokesperson confirmed the memo's intent was to discourage tokenmaxxing.

The memo calls out engineering teams that have become less connected to their customers and business. It states that if work does not benefit from current AI tooling, it is a finding, not a failing. However, the memo concedes that input metrics are deeply flawed but advises using them carefully. It also warns that non-adopters of AI tools are falling behind. AWS CEO Matt Garman encouraged developers in June to measure outcomes rather than token consumption.

Amazon shut down KiroRank, an employee-built leaderboard ranking people by token usage, in May. The shutdown of KiroRank led to the phenomenon known as tokenmaxxing, where people spun up junk tasks to climb ranks. Meta did a similar action with Claudenomics involving 85,000 employees in the same week as Amazon's KiroRank shutdown. Amazon's memo is similar to what Microsoft told its internal development teams in August. Amazon reportedly announced another 250 job cuts this week.