Amazon to cut 14,000 managerial jobs in major cost-saving restructuring |
Amazon is set to eliminate 14,000 managerial positions by early 2025 as part of a major cost-cutting initiative, reducing its global management workforce by 13%, according to a report by Financial Express. The move is expected to help the e-commerce giant save between ₹210 crore and ₹360 crore annually.
Once the layoffs take effect, the total number of managers at Amazon will decline from 105,770 to 91,936. The decision follows recent job cuts in the company’s communications and sustainability divisions, marking a broader effort to streamline operations and enhance profitability.
As part of its restructuring, Amazon has introduced a “bureaucracy tipline”, allowing employees to report inefficiencies within the company.
A January 2025 report by Business Insider highlighted new directives for managerial staff, including:
- Increasing the number of direct reports per manager
- Limiting senior-level hiring
- Reviewing compensation structures
These efforts align with Amazon CEO Andy Jassy’s strategy to reduce bureaucracy, accelerate decision-making, and improve operational efficiency.
Focus on Core Business and Workforce Reduction
Amazon has also been cutting underperforming programs to focus on its core business areas. The company has already discontinued certain initiatives, including:
- ‘Try Before You Buy’ clothing programme
- A rapid brick-and-mortar delivery service
Amazon has been adjusting its workforce since its rapid expansion during the COVID-19 pandemic, when its employee count surged from 798,000 in 2019 to over 1.6 million by the end of 2021. The company has since laid off 27,000 employees in 2022 and 2023 as part of its restructuring efforts.
CEO Andy Jassy aims to increase the ratio of individual employees to managers by at least 15% by 2025, stating that reducing unnecessary layers would allow Amazon to function more efficiently.
In September 2024, Jassy announced that Amazon employees would be required to return to the office full-time from January 2025, emphasizing that in-office work enhances collaboration and learning.
In October 2024, Morgan Stanley estimated that Amazon’s restructuring plan could eliminate approximately 13,834 managerial roles by early 2025.
The latest round of layoffs reflects Amazon’s continued focus on streamlining operations, cutting costs, and adapting to post-pandemic market realities.
