Amazon plans to reduce its number of managerial positions by about 14,000 by early 2025, aiming to save up to $3 billion annually. This move is projected to improve efficiency and agility, as per an analysis by Morgan Stanley. With fewer managers, the ratio of individual contributors to managers is expected to increase by at least 15% by the end of the first quarter of 2025.
To achieve this, the company may assign new roles to managers. This restructuring will lead to a flatter organizational structure, facilitating faster decision-making, increased accountability, and a stronger sense of belonging and ownership among employees.
Amazon aims to function more like a startup, emphasizing the benefits of stronger collaboration and faster decision-making. Business Insider reports that about seven percent of Amazon’s workforce holds managerial roles, with approximately 105,000 managers globally as of the end of Q2 2024. If the layoffs occur, this number will decrease to about 91,000 by 2025. Amazon currently employs over 1.5 million people globally.
