Amazon To Cut 14,000 Manager Positions By 2025: Report

Amazon intends to eliminate around 14,000 managerial roles by early 2025 in order to streamline operations and decrease expenses, according to a recent Morgan Stanley report. This restructuring might save the corporation between USD 2.1 billion and USD 3.6 billion per year, which represents a significant 3 per cent to 5 per cent of its estimated operational profit in 2025.

CEO Andy Jassy has set an ambitious aim of increasing the individual contributor/manager ratio by at least 15 per cent by the end of the first quarter of 2025. This project is part of Amazon's overall plan to ‘operate like the world's largest start-up,’ which talks about a culture of urgency, ownership and agility in decision-making. Jassy spoke about the importance of ‘scrappiness and frugality,’ as well as encouraging ‘deeply-connected collaboration’ across teams.

Amazon's management personnel is currently around 105,770, but Morgan Stanley forecasts that it might be reduced to 91,936 as a result of these adjustments. This huge reduction coincides with Jassy's aim of removing unneeded organisational levels and increasing the company's overall agility by lowering bureaucratic barriers.

The company stated to Business Insider that it had ‘added a lot of managers’ in recent years, implying that the time is appropriate for this transition. The corporation has begun a review of team structures, noting that, while particular job losses have not been agreed to, the change in ratio might be achieved by reassigning existing managers to other responsibilities.

According to Morgan Stanley's analysis, management jobs account for approximately 7 per cent of Amazon's staff, with annual salaries ranging from USD 200,000 to USD 350,000. The investment bank sees this potential restructuring as a significant opportunity for Amazon to improve operational efficiency.