Amazon may eliminate 14,000 managerial roles by early next year, according to a report from Morgan Stanley. The restructuring is aimed at cutting costs and improving efficiency, with estimated savings of $2.1 billion to $3.6 billion annually.
CEO Andy Jassy has pushed for a 15% increase in the ratio of individual contributors to managers by March 2025, a move designed to speed up decision-making by reducing red tape. Additionally, Jassy has launched a “bureaucracy tipline,” allowing employees to report unnecessary processes that slow down work.
Currently, Amazon employs around 1,05,770 managers, which makes up 7% of its global workforce. By 2025, this figure is expected to drop to 91,936. The company’s overall workforce numbers over 1.5 million, with most employees working in logistics and warehouse operations.
Morgan Stanley predicts that cutting management layers will improve Amazon’s agility and boost operating profits by 3% to 5% next year. Along with the restructuring, Amazon plans to bring employees back to the office full-time starting in January 2024.