Amazon Layoffs: Company will lay off 14,000 employees! This could be the reason
Amazon is planning to eliminate 14,000 manager level positions by early 2025. It is being said that this layoff will help the company save $2.1 billion to $3.6 billion every year. This cut will be 13% of the total global management workforce, reducing the number of managers from 1,05,770 to 91,936. Let us tell you, recently Amazon’s communication and sustainability units were also cut. The company is working on the goal of simplifying and restructuring its operations team.
According to the Financial Express report, CEO Andy Jassy’s strategy is focused on speeding up the company’s decision-making process and making operations more efficient. Under this plan, Amazon aims to increase the ratio of individual contributors and managers by 15%, thereby reducing bureaucracy and increasing the speed of work.
The report, quoting Business Insider, says that Morgan Stanley’s analysis shows that about 13,834 managerial positions can be eliminated under this restructuring. This will help the company save billions of dollars in costs.
Amazon has also launched a “Bureaucracy Tipline”, where employees can report ineffective processes and unnecessary layers. Apart from this, managers have been asked to work on team optimization and control costs.
Amazon did massive hiring during the pandemic. While there were 798,000 employees in 2019, by the end of 2021 this number exceeded 16 lakhs. However, in recent years the company has recalibrated its staffing model. Last year, Amazon also laid off 27,000 employees and discontinued several services, including the “Try Before You Buy” clothing program. Now, the company is focusing on long-term profitability and moving toward shrinking the management team.
