As the drive to cut costs grows, Amazon plans to fire off 14,000 managers by the beginning of 2025

As part of its efforts to reorganize teams and optimize processes, Amazon recently laid off employees in its sustainability and communications departments.

Amazon is laying off 13% of its global management staff, reducing the total number of managers from 105,770 to 91,936.

In an effort to save between $2.1 billion and $3.6 billion a year, Amazon plans to cut 14,000 administrative roles by the beginning of 2025. With this 13% cut to its global management personnel, there will be 91,936 managers instead of 105,770.

The job cuts come after Amazon recently laid off employees in its sustainability and communications departments as part of its efforts to reorganize teams and optimize operations.

Efficiency-Driven Restructuring:

Business Insider claims that the layoffs are in line with CEO Andy Jassy’s plan to streamline decision-making and boost productivity. In an effort to streamline operations and cut down on red tape, Jassy has laid out plans to raise the proportion of managers to individual contributors by at least 15% by the first quarter of 2025.

According to a Morgan Stanley analysis, Amazon’s reorganization may result in the elimination of 13,834 administrative positions by the beginning of next year, which would save a significant amount of money.

New Efficiency Indicators:

Amazon implemented a “bureaucracy tipline” as part of their cost-cutting initiative, which enables staff members to report inefficiencies. Additionally, managers have been instructed to:

These adjustments support Amazon’s larger initiatives to optimize processes and concentrate on profitability. Initiatives like the company’s “Try Before You Buy” clothes program and its quick brick-and-mortar delivery service have already been discontinued.

Amazon’s Workforce Evolution:

During the pandemic, Amazon’s workforce grew quickly, going from 798,000 workers in 2019 to over 1.6 million by the end of 2021. The business has now reevaluated its workforce requirements, though, as layoffs in 2022 and 2023 eliminated 27,000 positions.