Amazon May Cut 14,000 Managerial Jobs by 2025 to Save $3 Billion Annually
Amazon is planning a restructuring effort aimed at cutting 14,000 managerial positions by 2025, part of a broader cost-saving initiative led by CEO Andy Jassy. The move is projected to save the company $3 billion annually as it seeks to become efficient and remain competitive in the rapidly evolving tech industry.
The plan focuses on reducing managerial redundancy across Amazon’s vast global operations. By trimming excess layers of management, Jassy aims to create a more agile organization that can respond quickly to market changes. Media sources indicate that this transformation has been in the works for some time, as Jassy pushes for operational improvements to address inefficiencies that have emerged in recent years.
This latest initiative follows a series of layoffs targeting non-core business units over the past year, marking a continued shift in Amazon’s internal strategy. In an effort to encourage a streamlined approach, Jassy introduced a “bureaucracy tipline” to allow employees to report unnecessary procedures and obstacles that hinder productivity.
“We’re focused on removing layers, operating with fewer managers, and flattening the organization to accelerate decision-making,” Jassy explained. His focus on innovation and customer-centricity is at the heart of this strategy, intending to make Amazon more responsive to customer needs and competitive pressures.
According to Morgan Stanley, the planned reduction will cut Amazon’s global management workforce from approximately 1,05,770 to around 91,936, resulting in substantial cost savings and a leaner organizational structure.
While the move is expected to affect thousands of managers, Amazon has emphasized its commitment to supporting those impacted. The company has assured affected employees that they will receive severance packages and access to outplacement services to assist with their transition.
The company has seen significant growth in recent years, but with the tech sector experiencing rapid shifts, many companies, including Amazon, are being forced to reassess their organizational structures to remain competitive.