Amazon Inc. is preparing to lay off 14,000 managerial positions by early 2025 as part of a cost-cutting initiative, according to a report by Financial Express on Tuesday, March 18. The trillion-dollar company aims to reduce expenses by ₹210 crore to ₹360 crore annually through this 13% workforce reduction.
Following these job cuts, the total number of managers at Amazon will decrease from 1,05,770 to 91,936. In September 2024, Amazon’s CEO Andy Jassy announced plans to improve the ratio of individual contributors to managers by 15% by the end of March 2025. The company’s objective is to reduce bureaucracy and increase operational speed by flattening its management structure, as reported by Financial Express.
Earlier in January, Business Insider reported that Amazon had instructed some managers to increase the number of their direct reports, limit senior hiring, and reduce compensation for certain employees. This restructuring move is expected to impact thousands of corporate employees.
As of 2024, Amazon employs 15.5 lakh people, up from 15.3 lakh in the previous year, according to company filings.
The restructuring will also affect Amazon Web Services (AWS), where the sales team has been directed to halt all new managerial hires until the organizational changes are fully understood.
Amazon’s stock price reflected the market’s reaction, trading 2.11% lower at $191.61 at 12:46 p.m. (EDT) on Tuesday, March 18, compared to $195.74 at the previous market close. The stock also traded lower in the pre-market session on Wall Street.