Amazon’s Cost-Cutting Strategy Includes Laying Off

The tech giant Amazon is set to eliminate approximately 14,000 managerial positions by early 2025. This reduction represents a 13% decrease in its global management workforce, bringing the tidal numbers of managers down from 105,770 to 91,936.

The company projects these layoffs will result in annual savings ranging from $2.1 billion to $3.6 billion. This estimate is based on the annual cost per manager, which is between $200,000 and $350,000.

According to the reports, these job cuts are part of a broader restructuring effort led by CEO Andy Jassy, aiming to streamline operations and improve efficiency. The plan includes simplifying decision-making processes and increasing the ratio of individual contributors and managers by at least 15% in the first quarter of 2025.

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In addition to layoffs, Amazon has implemented several measures to reduce bureaucracy and enhance operational agility. These include introducing a “bureaucracy tipline” for employees to report inefficiencies, increasing the number of direct reports for managers, limiting senior hires and reviewing pay structures.

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