E-commerce major Amazon may lay off 14,000 managerial positions by early 2025 to save between $2.1 billion and $3.6 billion each year. This move will lessen the number of employees, marking a 13% reduction from 105,770 to 91,936 worldwide, reported Financial Express.
Amazon’s Job Cut Plans
Back in the date, in January, Business Insider reported that Amazon instructed some managers to take on more direct reports, limit senior-level hires, and cut compensation for certain employees. CEO Andy Jassy is focusing on streamlining decision-making and improving efficiency. His plan includes increasing the number of individual contributors relative to managers by 15% by the first quarter of 2025, with the goal of cutting down on bureaucracy and accelerating processes.
According to a report from Morgan Stanley, Amazon’s restructuring efforts could result in the elimination of approximately 13,834 managerial positions by early next year, which would significantly reduce costs.
New Efficiency Measures
In an effort to reduce costs, Amazon has rolled out a “bureaucracy tipline” for employees to report inefficiencies. Managers have been instructed to take action to streamline operations. These steps are part of Amazon’s larger strategy to optimize operations and prioritize profitability. The company has already discontinued projects like its “Try Before You Buy” clothing service and a fast-paced in-store delivery initiative.
Amazon’s Workforce Changes
During the pandemic, Amazon’s workforce grew rapidly, increasing from 798,000 employees in 2019 to over 1.6 million by the end of 2021. However, the company has since reassessed its staffing requirements, leading to significant job cuts, including 27,000 positions in 2022 and 2023.
