Amazon Plans to Cut 14,000 Management Jobs by Early 2025 in Latest Restructuring
Amazon's massive workforce reduction targets 14,000 managerial positions by early 2025, representing a 13% cut in its global management team. This restructuring aligns with CEO Andy Jassy's vision for a more streamlined organization and is expected to save $25-45 million annually.
Amazon headquarters exterior
The decision follows Amazon's dramatic workforce expansion during the pandemic, which saw employee numbers double from 798,000 in 2019 to over 1.6 million by 2021. The company had already reduced its workforce by 27,000 positions between 2022 and 2023.
Key Changes Include:
- Increasing direct reports per manager
- Pausing senior-level recruitment
- Reviewing compensation structures
- Implementing a "bureaucracy tipline" for reporting inefficiencies
Impact on Employees:
- Affected staff will receive severance packages and outplacement support
- Stricter five-day return-to-office policy implementation
- Discontinuation of certain projects, including "Try Before You Buy"
- Focus shift to core business areas like AWS and logistics
Future Outlook: Amazon continues to prioritize AI innovation, supply chain optimization, and cloud computing growth while streamlining operations. This restructuring reflects a broader industry trend where tech companies are emphasizing profitability over rapid expansion.
Morgan Stanley analysts project these changes will eliminate nearly 14,000 managerial roles by early 2025, marking a significant shift in Amazon's organizational structure and operational strategy.
The company remains focused on maintaining its market leadership while adapting to post-pandemic business realities through strategic workforce optimization and operational efficiency improvements.