Amazon is set to eliminate 14,000 managerial positions by early 2025 as part of a cost-cutting initiative projected to save between $2.1 billion and $3.6 billion annually, according to a report by Business Insider.
This reduction accounts for 13% of Amazon’s global management workforce, decreasing the number of managers from 105,770 to 91,936. The move follows recent layoffs in the company’s communications and sustainability divisions, aligning with Amazon’s broader efforts to optimize its organizational structure and improve cost efficiency.
CEO Andy Jassy has emphasized the need to simplify decision-making and enhance operational agility. By increasing the ratio of individual contributors to managers by at least 15% in the first quarter of 2025, Amazon aims to minimize bureaucracy and accelerate workflows.
Industry analysts see this restructuring as part of Amazon’s long-term strategy to sustain profitability amid rising operational costs and economic uncertainty. The company has been focusing on automation, artificial intelligence, and streamlined management structures to maintain competitiveness in the evolving e-commerce landscape.
Additionally, Amazon’s restructuring reflects a wider trend in the tech industry, where companies are increasingly prioritizing efficiency and innovation over managerial expansion. While the layoffs may pose challenges for affected employees, the company expects the shift to enhance productivity and decision-making, positioning Amazon for future growth in a highly competitive market.
