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Amazon is set to eliminate 14,000 managerial positions by early 2025 in a bid to save between $2.1 billion and $3.6 billion annually. This 13% reduction in its global management workforce will bring the number of managers down from 105,770 to 91,936.

The job cuts follow recent layoffs in Amazon’s communications and sustainability units, as the company moves to streamline operations and restructure teams.

The job cuts align with CEO Andy Jassy’s strategy to simplify decision-making and enhance efficiency. Jassy has outlined plans to increase the ratio of individual contributors to managers by at least 15% by the first quarter of 2025, aiming to reduce bureaucracy and speed up operations.

A Morgan Stanley report projects that Amazon’s restructuring could eliminate around 13,834 managerial roles by early next year, leading to substantial cost savings.

As part of its cost-cutting strategy, Amazon has introduced a “bureaucracy tipline”, allowing employees to flag inefficiencies. Managers have also been directed to: Increase direct reports, Limit senior hires and Review pay structures

These changes align with Amazon’s broader efforts to streamline operations and focus on profitability. The company has already shut down initiatives such as its “Try Before You Buy” clothing program and a rapid brick-and-mortar delivery service.

Amazon’s workforce expanded rapidly during the pandemic, surging from 798,000 employees in 2019 to over 1.6 million by the end of 2021. However, the company has since recalibrated its staffing needs, with previous layoffs cutting 27,000 jobs in 2022 and 2023.

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