Hyderabad: Amazon plans to cut nearly 14,000 managerial roles by early 2025, potentially saving over $3 billion annually, according to a recent report by Morgan Stanley. The move aligns with CEO Andy Jassy’s strategy to streamline Amazon’s workforce, focusing on operational efficiency by increasing the proportion of individual contributors over managers by at least 15%.
Managerial positions currently make up about 7% of Amazon’s workforce. By reducing this number, Amazon aims to improve productivity and eliminate unnecessary managerial layers. As of mid-2024, the company had approximately 105,770 managers worldwide, a figure that could drop to around 91,936 by the first quarter of 2025.
This restructuring is part of broader efforts to address challenges within Amazon’s e-commerce and cloud sectors. The company has introduced a “bureaucracy tipline,” allowing employees to report processes that slow down operations. Such initiatives reflect a trend among tech firms to reassess workforce structures, especially as they face rising economic pressures.
Morgan Stanley’s report highlights that these changes could result in annual savings between $2.1 billion and $3.6 billion. Amazon’s shift aims to enhance operational agility, reducing managerial overhead to sharpen its competitive edge in the tech industry.
