Amazon’s endeavour to cut costs is now set to impact the managers in its global workforce. If news reports are to be believed, the company is trying to cut its global management team by 13 per cent, that is, from 1,05,770 to 91,936.
The objective of this downsizing exercise is to streamline operations and restructure the organisation on the whole.
This reduction in the managerial ranks is expected to save the company a lot of money, in the range of $2.1 billion to $3.6 billion per year.
The restructuring is in line with Andy Jassy, CEO, Amazon’s efforts towards more simple decision-making processes and improved efficiency. Jassy had sought to improve the ratio of individual contributors to managers by a minimum of 15 per cent by Q1 of 2025, to ensure better speed and do away with extra layers and bureaucracy.
In January 2025, Amazon had trimmed its communications and sustainability teams. Reports at the time stated that dozens were let go in the communications and corporate-responsibility divisions. In that round of cuts, the roles that were too narrow in scope and resulted in excessive layers that could be eliminated were affected.
At the time, the company had said that it intends to lend support to the affected employees in the form of severance pay, health insurance benefits through the transition and outplacement assistance.
3 Comments
They are unable to compete the Market. Rate is higher
I believe the CEO or any other board members never thought about the employees as the layoff will destroy the family of the employee, they can think about it if the work will close for one day what impact will come to the business
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