The E-commerce major Amazon Inc. plans to layoff around 14,000 managerial positions by early 2025 as part of a cost-cutting strategy, according to media reports. This 13 per cent reduction will shrink its global management workforce from 105,770 to 91,936. The company seeks to save between Rs 210 crore and Rs 360 crore annually after this 13 per cent workforce reduction reportedly.
The E-commerce major giant attributes the move to a broader shift toward artificial intelligence (AI) and automation, emphasizing its focus on long-term efficiency amid economic uncertainty. Adding further, the job cuts follow recent layoffs in Amazon’s communications and sustainability units, as the company moves to streamline operations and restructure teams.
Notably, this will mark one of the largest workforce reductions in the company’s history. The layoffs will affect divisions including Amazon Web Services (AWS), retail operations, and human resources.
As part of its cost-cutting strategy, Amazon has launched a “bureaucracy tipline” to help employees identify inefficiencies. Additionally, managers have been directed to increase direct reports, limit senior hires, and review pay structures. These steps align with Amazon’s broader goal of streamlining operations and boosting profitability.
According to Business Insider, the job cuts reflect CEO Andy Jassy’s strategy to simplify decision-making and improve efficiency. Jassy plans to increase the ratio of individual contributors to managers by at least 15% by early 2025, aiming to cut bureaucracy and accelerate operations.
As of 2024, Amazon employs 15.5 lakh people, up from nearly 15.3 lakh previously, according to filing data cited by a news portal. The report also notes that Amazon Web Services (AWS) sales team must pause all new managerial hires until the organizational restructuring is fully understood.
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