The move represents a 13% reduction in the company’s global management headcount.
A Morgan Stanley report estimates that Amazon’s reorganisation could result in the elimination of around 13,834 managerial roles, leading to significant cost efficiencies.
The job cuts are expected to help the company maintain margins while continuing to invest in key business areas.
Post-restructuring, Amazon’s managerial workforce is likely to decline to 91,936.
Broader restructuring push
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The decision follows recent layoffs in Amazon’s communications and sustainability teams. The company has undertaken a series of restructuring measures aimed at streamlining operations and realigning internal structures.
The downsizing is in line with chief executive officer Andy Jassy’s ongoing strategy to reduce bureaucracy and simplify decision-making. Jassy has laid out plans to increase the ratio of individual contributors to managers by at least 15% by the first quarter of 2025.
New mechanisms
As part of the restructuring, Amazon has introduced a “bureaucracy tipline” — an internal tool that allows employees to report organisational inefficiencies. The initiative is aimed at identifying bottlenecks and accelerating internal processes.
In addition, the company has issued new guidelines for its managerial workforce, including:
- Increasing the number of direct reports per manager
- Restricting hiring for senior-level roles
- Reviewing compensation structures
These measures are designed to align with Amazon’s focus on improving productivity and prioritising profitability.
Amazon’s move comes amid a broader wave of layoffs in the technology sector in 2025, as companies look to tighten costs and optimise workforce structures in a slower growth environment.
Also Read: Tech layoffs in 2025: Microsoft, Amazon, Indian startups ShareChat, Pocket FM continue job cuts
