Amazon is gearing up to reduce 14,000 managerial positions by early 2025, aiming to save between $2.1 billion and $3.6 billion annually.
This 13% cut will shrink its global management workforce from 1,05,770 to 91,936. The layoffs will follow recent staff reductions in the company’s communications and sustainability units, signalling a major push to streamline operations, reported Financial Express on Tuesday, March 18.
Restructuring for speed and savings
CEO Andy Jassy is driving this overhaul to boost efficiency and enhance efficiency. According to Business Insider, Jassy’s strategy includes boosting the ratio of individual contributors to managers by at least 15% by Q1 2025.
A Morgan Stanley report estimated these changes will eliminate approximately 13,834 managerial roles, delivering significant cost savings.
Amazon is rolling out fresh measures to tighten operations, including a “bureaucracy tipline” for employees to report inefficiencies. Managers are now tasked with:
- Increasing the number of direct reports
- Limiting senior-level hires
- Reviewing and optimising pay structures
These steps are in tune with the closure of programmes like “Try Before You Buy” clothing and a rapid brick-and-mortar delivery service, reflecting Amazon’s focus on profitability.
Workforce shifts post-pandemic
Amazon’s employee count expanded rapidly during the pandemic, jumping from 7,98,000 in 2019 to over 1.6 million by the end of 2021.
Since then, the company has scaled back, shedding 27,000 jobs in 2022 and 2023. This latest round of cuts, first hinted at months ago, underscores Amazon’s ongoing efforts to right-size its workforce and adapt to a post-boom economic landscape.
