Amazon is making another major workforce adjustment, announcing plans to lay off 14,000 managerial employees by early 2025.
This move marks a 13% reduction in its global management workforce, aligning with CEO Andy Jassy’s vision for a leaner, more efficient organization.
The layoffs are expected to generate savings between $25 million and $45 million annually, according to reports from Business Insider. The decision follows previous cutbacks in Amazon’s communications and sustainability teams, reflecting the company’s broader restructuring efforts.
Why Is Amazon Cutting Jobs?
Amazon’s leadership cites operational efficiency and cost-cutting as primary reasons for these layoffs. The e-commerce giant, which expanded its workforce dramatically during the COVID-19 pandemic, is now scaling back to align with shifting business priorities.
- Amazon’s total workforce ballooned from 798,000 in 2019 to over 1.6 million by 2021.
- The company already cut 27,000 jobs between 2022 and 2023.
- The latest cuts focus on reducing managerial layers and bureaucracy.
Key Changes in Amazon’s Workforce Strategy
Amazon is implementing several organizational changes to streamline its workforce:
- Increasing the number of direct reports per manager to reduce management overhead.
- Pausing senior-level recruitment to focus on existing talent.
- Reviewing compensation structures to control costs.
Additionally, Amazon has introduced a “bureaucracy tipline”, allowing employees to report inefficiencies within the organization.
How Will This Impact Employees?
Employees affected by these layoffs will receive severance packages and outplacement support, though specifics vary by location. However, Amazon’s broader shift also includes:
- A stricter return-to-office policy requiring employees to be in-office five days a week.
- Discontinuation of certain projects, including the “Try Before You Buy” clothing initiative.
- A focus on core business areas, such as AWS and logistics.
What’s Next for Amazon?
Amazon’s ongoing restructuring is part of a larger industry trend, with many tech giants prioritizing profitability over aggressive expansion. Analysts, including those from Morgan Stanley, estimate that these changes could lead to the elimination of nearly 14,000 managerial roles by early 2025.
Despite the job cuts, Amazon remains committed to AI-driven innovation, supply chain optimization, and cloud computing growth.
Answering Popular Questions
Why is Amazon laying off employees?
Amazon is cutting jobs to reduce costs and improve operational efficiency, following overexpansion during the pandemic.
Which departments are affected by Amazon layoffs?
The layoffs primarily impact mid-level managerial positions, with prior cuts affecting communications and sustainability teams.
Will Amazon continue layoffs in 2025?
While the current plan focuses on early 2025, further layoffs could occur depending on economic conditions and business performance.
