Close Menu
    National News Brief
    Thursday, June 18
    • Home
    • Business
    • Lifestyle
    • Science
    • Technology
    • International
    • Arts & Entertainment
    • Sports
    National News Brief
    Home » Here’s What Amazon Is Doing To Cut Down On Middle Management

    Here’s What Amazon Is Doing To Cut Down On Middle Management

    Team_NationalNewsBriefBy Team_NationalNewsBriefJanuary 30, 2025 Business No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Amazon announced on Wednesday that it was laying off dozens of workers in its communications and sustainability departments, and earlier this month, the company let go of 200 employees from its North America stores team. It’s only the beginning.

    In September, Amazon CEO Andy Jassy announced that the company would be eliminating excess layers of middle management by the end of March. Now, a leaked Amazon Web Services (AWS) sales team guidelines document, obtained by Business Insider on Thursday, sheds light on how those middle-manager cuts will happen.

    The document tells AWS sales managers to increase their number of direct reports, pause hiring new managers, and demote some managers down a level to a non-managerial position of less pay. An Amazon spokesperson did not confirm the internal guidance to BI. AWS had about 115,000 employees out of Amazon’s total 1.55 million.

    When it comes to direct reports, the leaked document requires managers to have at least eight team members, up from the six that Amazon founder Jeff Bezos required in 2017.

    The AWS sales team guidelines also advised a pause on hiring new managers, stating that the team had hired more managers than entry-level employees in the past few years, driving costs up. Amazon’s structure had become more diamond-shaped than pyramid-shaped, the document stated, referring to the heavier middle management layer.

    The final recommendation in the leaked documentation was to move managers down a level to individual contributors, which has a lower pay range. Two AWS employees told BI that this had already happened to several managers.

    Andy Jassy. Photo by Noah Berger/Getty Images for Amazon Web Services

    These changes arrive in response to Jassy’s September note, which asked each senior leadership team to “increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025.”

    Related: ‘Not a Cost Play’: Amazon CEO Clarifies Why Employees Have to Come Back to the Office

    A Morgan Stanley note to investors in October estimated that Amazon could let go of 13,834 managers under Jassy’s guidelines, assuming that 7% of Amazon’s workforce is management. Amazon had 105,770 managers as of the second quarter of 2024 and would cut that number down to 91,936 managers by the first quarter of 2025, per the note.

    Morgan Stanley estimated that if Amazon’s cost per manager ranged from $200,000 to $350,000 per year, Amazon would save between $2.1 billion and $3.6 billion by reducing its manager headcount.

    At a November all-hands meeting, Jassy explained that changes to middle management were necessary to keep Amazon competitive. He had created a “Bureaucracy Mailbox” in September for Amazon employees to email him examples of excessive processes or rules that could be eliminated. As of November, that inbox had received more than 500 emails, with Amazon taking action on more than 150 employee suggestions.

    “The reality is that the [senior leadership team] and I hate bureaucracy,” Jassy said. “One of the reasons I’m still at this company is because it’s not a political or bureaucratic place.”

    Related: I Tried Buying a Car on Amazon. Here Are the Pros and Cons.



    Source link

    Team_NationalNewsBrief
    • Website

    Keep Reading

    Sleep Number Corporation stock will be delisted from Nasdaq after Chapter 11 bankruptcy; shares plummet

    I drained my 401(k) for an emergency. Here’s what I learned

    Panera Bread stores that closed in a franchise dispute are reopening under new ownership: See a list of locations

    Lululemon brought the wrong drum to an activation. It’s the latest brand to fumble as it looks to China for growth

    Workers are judging companies for their silence on LGBTQ+ issues

    Rivian layoffs: Electric SUV maker slashes hundreds of jobs in bid for profitability after R2 launch

    Add A Comment

    Comments are closed.

    Editors Picks

    The ‘Active 3 TD-catch NFL games’ quiz

    May 8, 2026

    Demi Moore Spills Truth About Tom Cruise’s Awkward Reaction

    October 27, 2025

    Al Jazeera decries ‘unfounded’ Israeli claims about its Gaza journalists | Hamas News

    October 23, 2024

    Kerry Lutz: Did Martin Armstrong Predict The Great Decline?

    July 6, 2025

    Google Parent Alphabet Reports 12% Increase in Revenue

    April 25, 2025
    Categories
    • Arts & Entertainment
    • Business
    • International
    • Latest News
    • Lifestyle
    • Opinions
    • Politics
    • Science
    • Sports
    • Technology
    • Top Stories
    • Trending News
    • World Economy
    About us

    Welcome to National News Brief, your one-stop destination for staying informed on the latest developments from around the globe. Our mission is to provide readers with up-to-the-minute coverage across a wide range of topics, ensuring you never miss out on the stories that matter most.

    At National News Brief, we cover World News, delivering accurate and insightful reports on global events and issues shaping the future. Our Tech News section keeps you informed about cutting-edge technologies, trends in AI, and innovations transforming industries. Stay ahead of the curve with updates on the World Economy, including financial markets, economic policies, and international trade.

    Editors Picks

    Early prototype of Stonehenge unearthed 3 miles away from prehistoric landmark

    June 18, 2026

    China Humanoid Robot Marathon Winner Runs On Liquid Cooling

    June 18, 2026

    The Divide Is No Longer Left Vs Right

    June 18, 2026

    Erin Lichy Confirms Carole Radziwill ‘RHONY’ Drama

    June 18, 2026
    Categories
    • Arts & Entertainment
    • Business
    • International
    • Latest News
    • Lifestyle
    • Opinions
    • Politics
    • Science
    • Sports
    • Technology
    • Top Stories
    • Trending News
    • World Economy
    • Privacy Policy
    • Disclaimer
    • Terms and Conditions
    • About us
    • Contact us
    Copyright © 2024 Nationalnewsbrief.com All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.