Amazon is planning to cut 14,000 managerial positions by early 2025 as part of its efforts to cut costs and improve efficiency, according to a report. The move, which accounts for a 13% reduction in its global management workforce, is expected to help the company save between Rs 210 crore and Rs 360 crore annually. Once implemented, the total number of managers at the e-commerce giant will drop from 1,05,770 to 91,936, Financial Express reported.
The decision follows recent job cuts in Amazon's communications and sustainability divisions, reflecting the company's broader restructuring plans.
In a bid to streamline operations, Amazon has introduced a “bureaucracy tipline” — a mechanism allowing employees to report inefficiencies within the organisation, the report said.
A January 2025 report in Business Insider said the e-commerce major issued new directives for its managerial staff, including:
- Expanding the number of direct reports per manager
- Limiting senior-level recruitment
- Reviewing compensation structures
These measures align with Amazon's strategy to improve operational efficiency and prioritise profitability. The company has already discontinued certain initiatives, such as its ‘Try Before You Buy' clothing programme and a rapid brick-and-mortar delivery service, as it shifts focus to its core business areas.
The layoffs were part of CEO Andy Jassy's strategy to streamline decision-making and improve efficiency. Jassy plans to raise the ratio of individual contributors to managers by at least 15% by 2025, aiming to cut bureaucracy and accelerate operations, Business Insider reported.
Earlier, in September 2024, Mr Jassy told employees that they would be required to return to the office five days a week starting January 2025. In a note, he said that in-office work makes it easier for employees to learn and collaborate. Reducing the number of managers would eliminate unnecessary layers, allowing Amazon to operate more efficiently and with fewer bureaucratic obstacles, he added.
In a note published in October 2024, Morgan Stanley estimated that this restructuring could lead to the elimination of around 13,834 managerial roles by early 2025.
Amazon's workforce expanded during the COVID-19 pandemic, reportedly growing from 7.98 lakh employees in 2019 to over 16 lakh by the end of 2021. The company has since adjusted its staffing levels, cutting 27,000 jobs in 2022 and 2023, reported Financial Express.
