World
India
Amazon is set to lay off 14,000 managerial employees by early 2025 as part of a sweeping restructuring plan aimed at increasing efficiency and reducing costs. The move, representing a 13% reduction in the company’s global management workforce, is expected to save Amazon between $2.1 billion and $3.6 billion annually. This latest round of layoffs follows recent job cuts in Amazon’s communications and sustainability divisions, signaling a broader shift in how the company approaches its corporate structure.
The decision aligns with CEO Andy Jassy’s ongoing efforts to streamline operations and flatten the organizational hierarchy. By the first quarter of 2025, Amazon plans to increase the ratio of individual contributors to managers by at least 15%, a strategy designed to accelerate decision-making and enhance operational efficiency. According to sources cited by Business Insider, Jassy has been vocal about reducing bureaucratic layers that slow down processes, reinforcing his vision of making Amazon function more like a nimble startup.
To support this transformation, Amazon has introduced a new “bureaucracy tipline” that allows employees to flag inefficiencies within the organization. Additionally, managers have been directed to increase their number of direct reports, limit senior hires, and reassess pay structures to optimize costs. These measures come as part of a broader initiative to create a leaner corporate framework while maintaining Amazon’s aggressive focus on profitability.
Amazon’s workforce saw rapid expansion during the pandemic, growing from 798,000 employees in 2019 to over 1.6 million by the end of 2021. However, as consumer demand stabilized, the company began recalibrating its staffing levels. Over the past two years, Amazon has already laid off 27,000 employees, primarily in corporate roles, as part of a cost-cutting effort. By late 2024, its global workforce stood at approximately 1.5 million, including 350,000 corporate employees and over a million frontline workers in warehouse and delivery operations. The latest job cuts, however, mark a significant shift in approach, targeting managers rather than entry- or mid-level employees.
The restructuring comes amid growing financial pressures, including increasing investor scrutiny and a competitive e-commerce landscape that demands higher efficiency. Analysts suggest that Amazon’s increasing reliance on artificial intelligence and automation has also reduced the need for traditional managerial oversight, making middle-management roles more expendable. Furthermore, Amazon’s recent return-to-office mandate has led to speculation that the company is encouraging voluntary attrition as part of its workforce reduction strategy.
The layoffs have already begun, with Amazon implementing the cuts in phases. In January 2025, 200 jobs were eliminated in the North American Stores division, followed by workforce reductions in the communications and sustainability teams. A Morgan Stanley report from late 2024 projected that Amazon’s restructuring would ultimately eliminate close to 14,000 managerial roles, contributing to significant cost savings while reshaping the company’s leadership dynamics.
ALSO READ: “Think Twice Before Coming,” Indian PhD Student Warns Against UK Master’s Degrees
