Amazon is making some big changes to how it runs its company. They announced in September 2024 that they will cut thousands of middle management jobs by March 2025. The goal is to make things work better and to reduce too much red tape.
CEO Stands Against Bureaucracy
Andy Jassy, the CEO, hates bureaucracy. He told everyone at a meeting in November 2024 that he wants Amazon to stay a simple and efficient place. “I’m here because it’s not a political mess,” he said.
Changes to Management
As part of the changes, Amazon Web Services (AWS) will now require that each manager has at least eight direct reports instead of six. This will affect how managers work across different teams.
Money Saved and Job Losses
Experts from Morgan Stanley say around 13,834 managerial jobs could be lost. Since these jobs usually pay between $200,000 and $350,000 a year, Amazon could save between $2.1 billion and $3.6 billion each year.
Listening to Employees
To hear what workers think, Amazon set up a “Bureaucracy Mailbox” in September 2024. Employees can send in their ideas to cut down on inefficient processes. Already, the company has received over 500 suggestions and has made changes based on more than 150 of them.
Recent Layoffs and Changes
This restructuring follows earlier layoffs in 2024, where 200 people were let go from various departments. The AWS division, which has around 115,000 of Amazon’s total 1.55 million employees, will see big changes too.
This restructuring supports Amazon’s goal of staying competitive while optimizing its workforce. The changes are expected to wrap up by the end of March 2025.
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