Amazon has announced a major workforce reduction, planning to lay off 14,000 managerial employees by early 2025. This move is part of the company’s broader strategy to cut costs, improve efficiency, and streamline operations. The layoffs are expected to save Amazon between $2.1 billion and $3.6 billion annually.
Why is Amazon Cutting Jobs?
Amazon is restructuring to reduce bureaucracy and improve decision-making. CEO Andy Jassy aims to increase the ratio of individual employees to managers by 15%, ensuring a more streamlined workflow. The company has also introduced a “bureaucracy tipline,” encouraging employees to report inefficiencies.
Amazon’s Workforce Evolution
Amazon experienced rapid workforce expansion during the pandemic, growing from 798,000 employees in 2019 to over 1.6 million by 2021. However, with the return to normalcy, Amazon has reassessed its staffing needs. In 2022 and 2023, 27,000 positions were already eliminated as part of ongoing cost-cutting efforts.
Projects & Operations Affected
Amazon has already shut down several services to reduce expenses, including:
- “Try Before You Buy” apparel service.
- A brick-and-mortar quick delivery service.
According to a Morgan Stanley analysis, this restructuring could lead to 13,834 managerial positions being cut, further driving cost reductions.
What’s Next for Amazon Employees?
The layoffs reflect Amazon’s focus on long-term profitability. Employees in affected roles may need to explore internal job postings or seek new opportunities outside the company.
With these changes, Amazon is adapting to market trends, ensuring it remains competitive while maintaining a leaner management structure.
Stay updated on the latest job market trends and financial news by following us!
