Amazon plans massive layoffs to cut 14,000 manager positions by 2025
by KalingaTV Bureau · KalingaTVThe popular e-commerce platform Amazon is reportedly planning to reduce manager posts to save $3 billion annually. The company is all set to slash 14,000 manager positions by 2025, as part of its efforts to streamline operations and improve efficiency.
According to sources, the company’s CEO Andy Jassy has made plans to reduce managerial roles, to eliminate redundant roles and positions. The move is expected to impact around 14,000 manager positions.
The move will primarily affect managerial positions, with a focus on eliminating redundant roles and consolidating responsibilities. This move is being taken to cut the unnecessary fat and make the company more competitive in the rapidly evolving tech industries.
The layoffs are part of Amazon’s broader restructuring efforts. They have been underway since last year. The company has already eliminated several non-core businesses and reduced its workforce in certain departments.
CEO Jassy has also introduced a “bureaucracy tipline” which will allow employees to report unnecessary procedures that hinder their work.
Morgan Stanley, a global leader in investment banking estimates that this big move of Amazon’s can lead to a significant decrease in its management workforce. It will be from approximately 105,770 to around 91,936 globally. The reduction is anticipated to result in substantial cost savings. Amazon’s decision to cut managerial positions is reportedly driven by the company’s desire to foster a culture of innovation and entrepreneurship and improve operational efficiency.
CEO Andy Jassy has stated that, “We’re committed to make Amazon a more agile, innovative, and customer-obsessed company. Removing layers, operating with fewer managers and flattening the organization are all in focus to move faster.”
While the move is expected to impact approximately 14,000 manager positions, Amazon has assured employees that it will provide comprehensive support, including severance packages and outplacement services, to affected staff.
The development comes as Amazon faces increasing competition from rival tech companies and evolving consumer behaviors. CEO Jassy’s strategic vision aims to position Amazon for long-term success.
Amazon’s restructuring plans will be closely analyzed by analysts and competitors as the tech industry continues to change and grow.