Amazon to Slash 14,000 Roles: Cost-Cutting Intensifies

In a significant move to streamline operations and reduce costs, Amazon is reportedly planning to eliminate 14,000 managerial positions by early 2025. This decision, impacting approximately 13% of its global management workforce, aims to generate substantial annual savings, estimated between ₹210 crore and ₹360 crore.

According to sources, this restructuring effort follows recent cuts within Amazon’s communications and sustainability divisions, indicating a broader company-wide initiative to enhance efficiency and prioritize profitability.

To further optimize processes, Amazon has reportedly introduced a “bureaucracy tipline,” encouraging employees to identify and report internal inefficiencies.

Key Strategies for Streamlining Operations

Reports indicate that Amazon implemented several directives for its managerial staff, including:

• Expanding the number of direct reports per manager
• Limiting senior-level recruitment
• Reviewing existing compensation structures

These measures align with CEO Andy Jassy’s vision to foster a leaner, more agile organization. Jassy aims to increase the ratio of individual contributors to managers by at least 15% by 2025, reducing bureaucratic layers and accelerating decision-making processes. This initiative also involves discontinuing certain programs like the ‘Try Before You Buy’ clothing service and rapid brick-and-mortar delivery, enabling a sharper focus on core business areas.

In September 2024, Jassy emphasized the importance of in-office collaboration, requiring employees to return to the office five days a week starting January 2025, promoting better learning and teamwork.

Analysts at Morgan Stanley projected in October 2024 that this restructuring could result in the elimination of approximately 13,834 managerial roles by early 2025.

While Amazon significantly expanded its workforce during the COVID-19 pandemic, reaching over 1.6 million employees by the end of 2021, the company has since been adjusting its staffing levels. In 2022 and 2023, Amazon cut 27,000 jobs in response to evolving business needs.

Impact and Future Outlook

This strategic realignment reflects Amazon’s commitment to long-term sustainability and profitability in a dynamic market landscape. By reducing managerial overhead and streamlining operations, Amazon aims to enhance its competitive edge and drive innovation in its core business sectors.