Amazon to Layoff 14,000 Managers by Early 2025

E-commerce giant Amazon is set to trim 14,000 managerial positions by early 2025, which can save between $2.1 billion and $3.6 billion annually. Globally, the management force will be brought down to 91,936 from 105,770, a reduction of 13%.

These measures come following recent layoffs in Amazon’s communications and sustainability units as the company is looking forward to streamline operations and restructure teams.

Restructuring for Efficiency

Business Insider reported that job cuts align with CEO Andy Jassy’s strategy to simplify decision-making and enhance efficiency. Jassy has outlined a plan to increase the ratio of individual contributors to managers by at least 15% by the first quarter of 2025. This is being done to enhance operations.

As per a Morgan Stanley report, Amazon’s restructuring measure could eliminate around 13,834 managerial roles by early next year.

New Measures

Amazon has introduced a “bureaucracy tipline”. This allows employees to flag inefficiencies. Managers have been asked to:

1. Increase direct reports

2. Limit senior hires

3. Review pay structures

These measures are in-line with Amazon’s broader efforts to prioritise operations and focus on profitability. Amazon has previously shut down initiatives such as its “Try Before You Buy” clothing program and a rapid brick-and-mortar delivery service.

Overview on workforce

Employees in Amazon soared from 798,000 employees in 2019 to 1.6 million by the end of 2021. However, the company laid off 27,000 jobs in 2022 and 2023 due to its cost-cutting measure.