Jassy Reaffirms Anti-Bureaucracy Stance
CEO Andy Jassy has consistently spoken out against bureaucracy, reinforcing his leadership approach. “The reality is that the [senior leadership team] and I hate bureaucracy,” Jassy stated at a company-wide all-hands meeting in November 2024, as reported by Business Insider. “One of the reasons I’m still at this company is because it’s not a political or bureaucratic place.”
Changes to Management Structure
As part of the restructuring, Amazon Web Services (AWS) has introduced new management requirements, mandating that managers oversee a minimum of eight direct reports, up from the previous threshold of six. This change is expected to significantly impact the company’s management structure across various divisions.
Estimated Cost Savings and Job Losses
Morgan Stanley analysts estimate that the restructuring could lead to approximately 13,834 managerial roles being eliminated. Given the estimated annual salaries for these positions range between $200,000 and $350,000, the company stands to save between $2.1 billion and $3.6 billion per year.
Addressing Employee Concerns Through the ‘Bureaucracy Mailbox’
In response to internal feedback, Amazon introduced a “Bureaucracy Mailbox” in September 2024, enabling employees to report inefficient processes. The initiative has already received over 500 emails, with the company implementing over 150 employee-driven suggestions to streamline operations.
Previous Layoffs and Organisational Shifts
This latest restructuring follows a series of layoffs in 2024, which affected multiple departments, including communications, sustainability, and the North America stores team, where 200 employees were let go. The AWS division, which accounts for approximately 115,000 of Amazon’s 1.55 million-strong workforce, is expected to undergo significant organisational changes as part of the broader restructuring efforts.The restructuring aligns with Amazon’s long-term strategy to optimise its workforce while maintaining a competitive position in the industry. The changes are expected to be completed by the end of the first quarter of 2025.
