Amazon, one of the world’s largest e-commerce companies, is set to reduce 14,000 managerial positions by early 2025. The decision is expected to save the company between $2.1 billion and $3.6 billion annually as part of its ongoing efforts to streamline operations and improve efficiency.
As per the news report, the company seeks to save between ₹210 crore and ₹360 crore annually after this 13 per cent workforce reduction. These managerial job cuts will bring down the number of managers in the firm to 91,936 managers, compared to the current level of 1,05,770 managers.
Amazon’s latest round of layoffs has drawn sharp criticism from Complete Circle CIO Gurmeet Chadha, who took to X to express his frustration over corporate jargon and AI-driven job cuts. Commenting on Amazon’s decision to lay off more employees, Chadha wrote, “Amazon is laying off 10000 more people after laying off 18k in November. They call their HR heads as People Experience Head, Chief People Officer and fancy names… employees r called families. Sab drama!!”
13% Reduction in Management Workforce
With this move, Amazon’s global management workforce will drop from 105,770 to 91,936, marking a 13% reduction. These layoffs follow recent job cuts in the company’s communications and sustainability units as Amazon looks to restructure its teams.
CEO’s Strategy to Improve Efficiency
According to Business Insider, the layoffs are in line with CEO Andy Jassy’s strategy to improve decision-making and increase the ratio of individual contributors to managers by at least 15% by Q1 2025. The company believes this restructuring will enhance overall operations.
A Morgan Stanley report suggests that Amazon’s cost-cutting measures could eliminate 13,834 managerial roles in the next year.
Amazon Introduces ‘Bureaucracy Tipline’
To support its efficiency drive, Amazon has introduced a “bureaucracy tipline,” allowing employees to report inefficiencies in the system. Additionally, managers have been instructed to:
- Increase the number of direct reports
- Limit senior hires
- Review pay structures
These measures reflect Amazon’s broader focus on profitability and operational efficiency.
Previous Layoffs and Cost-Cutting Measures
Amazon has taken several steps in recent years to cut costs and restructure operations. The company previously shut down initiatives such as:
- “Try Before You Buy” clothing program
- Rapid brick-and-mortar delivery services
Amazon’s total workforce doubled from 798,000 in 2019 to 1.6 million by the end of 2021. However, as part of its cost-cutting measures, Amazon laid off 27,000 employees in 2022 and 2023.
With these new managerial job cuts, Amazon continues its effort to optimize its workforce and maintain profitability in a highly competitive market.
