In the wake of widespread reports about Amazon laying off nearly 14,000 managers, the e-commerce giant has issued a clarification, denying large-scale job cuts. Earlier reports suggested that this move, expected in early 2025, was part of Chief Executive Officer (CEO) Andy Jassy’s plan to flatten Amazon’s corporate hierarchy and save between Rs 210 crore and Rs 360 crore annually.
However, in a statement shared with employees and reiterated to the media, Amazon spokesperson Brad Glasser clarified that the company had achieved its restructuring goals without eliminating thousands of roles.
“This claim is false and based on inaccurate assumptions… We set a goal to increase the ratio of individual contributors to managers by 15%... There are a number of ways to achieve that increase without eliminating roles. We’ve now reached that goal…” Glasser stated.
The restructuring exercise was focused on increasing the ratio of individual contributors (ICs) to managers by 15 per cent by March 2025. Early figures had indicated that over 13 per cent of management roles would be affected.
But Amazon now emphasises that this goal was met by combining teams and reassigning managers to IC positions, rather than mass layoffs.
An internal memo from Jassy in September 2024 had highlighted concerns over excessive managerial layers, leading to “pre-meetings for the pre-meetings” and decision bottlenecks. The move towards flatter structures aimed to drive quicker decisions and improve ownership culture across business lines.
While the restructuring sparked criticism from market observers like Gurmeet Chadha, Chief Investment Officer (CIO) at Complete Circle, and finance educator Akshat Shrivastava, who questioned the need for such measures given Amazon’s cash reserves, some data suggests younger workers prefer flatter hierarchies.
A Robert Walters survey indicated that over half of Generation Z professionals would rather avoid managerial roles, aligning with Jassy’s vision. Amazon’s clarification comes as other tech giants — including Meta, Google, and Intel — also reduce middle management in favour of what is being called ‘conscious unbossing.’
