Amazon Layoffs: Amazon is set to reduce its managerial workforce by 14,000 positions by early 2025 as part of a broader cost-cutting and efficiency-boosting strategy, according to a recent report. The move, representing a 13% reduction in its global management team, is expected to generate annual savings of ₹210 crore to ₹360 crore. Once the layoffs are implemented, the total number of managers at the e-commerce giant will shrink from 1,05,770 to 91,936, as reported by Financial Express.
This decision comes amid Amazon’s ongoing restructuring efforts, which have already led to job cuts in the communications and sustainability departments. The company is now taking additional steps to streamline operations and reduce bureaucracy.
Amazon Introduces ‘Bureaucracy Tipline’ for Efficiency
In a bid to enhance operational efficiency, Amazon has introduced a “bureaucracy tipline”, a mechanism allowing employees to report inefficiencies within the organization, the report stated.
A Business Insider report from January 2025 highlighted several directives issued to Amazon’s managerial staff, including:
- Increasing the number of direct reports per manager
- Restricting senior-level hiring
- Reviewing and adjusting compensation structures
These measures align with Amazon’s long-term strategy to improve productivity while prioritizing profitability. The company has already discontinued several initiatives, such as the ‘Try Before You Buy’ clothing program and a rapid brick-and-mortar delivery service, to focus on its core business.
CEO Andy Jassy’s Efficiency Strategy
The layoffs are a part of CEO Andy Jassy’s broader strategy to streamline decision-making and boost efficiency. Jassy plans to increase the ratio of individual contributors to managers by at least 15% by 2025, aiming to reduce bureaucratic hurdles and speed up operations, Business Insider reported.
Previously, in September 2024, Jassy informed Amazon employees that they would be required to return to the office five days a week starting January 2025. He emphasized that in-office collaboration fosters learning and teamwork. He also stated that reducing managerial layers would enable Amazon to operate more effectively with fewer bureaucratic obstacles.
Restructuring Could Lead to Nearly 14,000 Job Cuts
In an October 2024 analysis, Morgan Stanley estimated that Amazon’s restructuring efforts would result in the elimination of approximately 13,834 managerial roles by early 2025.
Amazon’s workforce expanded significantly during the COVID-19 pandemic, growing from 7.98 lakh employees in 2019 to over 16 lakh by the end of 2021. However, the company has since adjusted its staffing levels, eliminating 27,000 jobs in 2022 and 2023, according to Financial Express.
With these latest layoffs, Amazon continues to refocus on efficiency and profitability, positioning itself for a leaner and more agile future.
