Amazon To Cut 14,000 Managerial Roles By 2025

Amazon is set to reduce its managerial workforce, cutting 14,000 manager positions by 2025 in a move to save $3 billion annually. This restructuring plan is part of CEO Andy Jassy’s broader strategy to streamline operations and enhance efficiency across the company.

The plan will focus on trimming redundant managerial roles and consolidating responsibilities, aiming to foster a more agile and competitive organisation. Sources reveal that Jassy has been pushing for this transformation to cut excess layers of management and drive operational improvements, particularly in response to the rapid changes within the tech sector.

This restructuring initiative follows several rounds of layoffs in non-core business areas over the past year. In line with this, Jassy introduced a "bureaucracy tipline," allowing employees to report unnecessary procedures that slow down productivity.

According to Morgan Stanley, the reduction will decrease Amazon’s global management workforce from roughly 1,05,770 to around 91,936, resulting in substantial cost savings and operational agility.

Jassy emphasised the company's commitment to becoming more innovative and customer-centric, stating, "We’re focused on removing layers, operating with fewer managers, and flattening the organization to accelerate decision-making."

While the move is expected to impact thousands of managerial positions, Amazon has assured affected employees that they will receive severance packages and support, including outplacement services, to help them transition.