Amazon, listed among the world's largest e-commerce companies, is set to eliminate about 14,000 managerial positions, with actions beginning in early 2025. This decision is part of Amazon's strategy to save an estimated $2.1 billion to $3.6 billion annually.
After reducing the management workforce by 13 percent in the company's offices worldwide, the number of managers will come down from 1,05,770 to 91,936. Having fewer managers will remove unnecessary organizational layers and help the company grow.
It is worth noting that earlier employees were also recently laid off from Amazon's Communications and Sustainability Unit. Because the company is considering reorganizing its teams and making operations smoother. The layoffs in the company are being done at the behest of CEO Andy Jassy.
What are the reasons behind layoffs at big companies?
This is in line with the strategy of big companies to increase work efficiency and simplify the decision-making process. This year, big companies in the technology and retail sectors are laying off employees to meet the challenges of artificial intelligence and focus their full attention on maximizing profits.
A report by Morgan Stanley estimates that Amazon may cut its management workforce by about 13,834 in the coming time. The company has started 'Bureaucracy Tipline' as part of its strategy of cost cutting. Under this, the inefficiencies of the employees will be marked. Its instructions have also been given to the managers.
Amazon has been seeing continuous layoffs for the last several years. The biggest wave of layoffs in the company was seen in 2022 when it removed 27 thousand employees from the workforce. This layoff was done from various departments. The company is now reducing the number from those departments which need to be downsized.
Prakash Kumar Pandey
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