Amazon has plans to cut 14,000 managerial roles for greater efficiency

Amazon has announced plans to reduce its managerial workforce by 14,000 positions by early 2025 aiming to save between $2.1 billion and $3.6 billion annually. This 13% reduction in its global management team will bring the total number of managers down from 105,770 to 91,936. The decision follows previous job cuts in Amazon’s communications and sustainability departments as the company works to streamline its operations. 

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According to Business Insider, these cuts align with CEO Andy Jassy’s strategy of improving operational efficiency and simplifying decision-making. Jassy's plan includes increasing the ratio of individual contributors to managers by at least 15% by the first quarter of 2025, which will reduce bureaucracy and speed up company processes. As part of this, Amazon has set up a "bureaucracy tipline" for employees to report inefficiencies and instructed managers to find ways to further streamline operations.

This restructuring is part of Amazon's broader effort to enhance profitability. The company has also discontinued several projects, such as the "Try Before You Buy" apparel service and a quick brick-and-mortar delivery service, as part of its cost-cutting measures. 

Amazon's workforce expanded dramatically during the pandemic, from 798,000 in 2019 to over 1.6 million by 2021, driven by a surge in e-commerce demand.

 However, post-pandemic, Amazon has reassessed its staffing needs, cutting 27,000 jobs in 2022 and 2023. According to a Morgan Stanley report, these restructuring efforts could lead to the elimination of around 13,834 managerial positions by early 2025.