Amazon has announced plans to review its team structures, leading to potential layoffs, particularly among managerial positions.
The company has indicated that while some roles may be eliminated, it has not confirmed that jobs will definitely be lost.
The adjustments may also involve reassigning managers to new roles rather than outright terminations.
Targeting Manager Positions
Recently, reports surfaced that Amazon intends to eliminate around 14,000 manager positions by the end of the first quarter of 2025.
This strategy aligns with CEO Andy Jassy’s objective to enhance the ratio of individual contributors to managers,
aiming for at least 15% by the specified deadline.
According to a report by The Information, these layoffs will specifically impact corporate employees, excluding front-line workers.
Understanding Front-line Workers
Front-line workers are those engaged in Amazon’s warehouse and delivery operations. Of
Amazon’s total global workforce of over 1.5 million, more than 1 million are front-line employees, while approximately 350,000 work in corporate roles,
including engineering, marketing, and product management.
Financial Impact of Layoffs
Morgan Stanley’s analysis suggests that these layoffs could save Amazon up to $3 billion annually.
Reducing the number of managers is expected to eliminate unnecessary organizational layers, thereby allowing Amazon to grow more rapidly without the hindrance of bureaucracy.
The company has stated that it has recently added a significant number of managers, indicating that now is an opportune time for structural changes.
