Amazon may reduce its workforce further; here’s what the CEO disclosed in a company memo
Amazon is reportedly preparing for another round of job cuts, as indicated by a recent memo from CEO Andy Jassy. In this internal communication, Jassy outlined plans for significant workforce changes, aiming to reduce the number of managers across various divisions by 15% by the end of Q1 2025.
The goal is to create a more effective and flexible organizational structure by decreasing management layers and increasing the number of individual contributors. Jassy emphasized that this shift would help eliminate bureaucracy, improve decision-making, empower employees locally, and ultimately enhance customer service.
While Amazon frames these changes as a way to foster employee ownership and efficiency, many anticipate that they may precede further layoffs. This concern arises in the context of substantial job losses in 2023, when the company cut around 27,000 positions as part of cost-saving measures.
To implement these changes, Jassy noted that the People Experience and Technology (PxT) team will work closely with Amazon's leadership, aiming to streamline operations so employees can make quicker, client-focused decisions.
Additionally, the memo announced a significant shift in labor policy: starting January 2, 2025, corporate staff will be required to work in the office five days a week, moving away from the current hybrid model of three in-office days. This change has the potential to further impact employee sentiment amid the organizational restructuring.
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