Amazon Layoffs: Tech Firm to Cut 14,000 Manager Positions by 2025, Says Report

Amazon is set to cut approximately 14,000 managerial positions by early 2025 as part of a strategy to enhance operational efficiency and save an estimated $3 billion annually. This decision, reported by Morgan Stanley, aims to increase the ratio of individual contributors to managers by at least 15% by March 2025. CEO Andy Jassy emphasized the need for a culture of urgency, accountability, and collaboration, while also introducing a "bureaucracy tipline" for employees to report inefficiencies. The layoffs could reduce Amazon's management workforce from around 105,770 to approximately 91,936, with potential annual savings ranging from $2.1 billion to $3.6 billion. Although Amazon has acknowledged the growth of its management ranks and the need for restructuring, it has not confirmed specific job cuts, suggesting that some changes may occur through reassignment rather than direct layoffs. The restructuring is part of a broader trend in the tech industry, which has seen significant layoffs this year. Additionally, Jassy announced that employees will be required to return to the office full-time starting January next year.

- Amazon plans to cut 14,000 managerial positions by early 2025.

- The layoffs aim to save $3 billion annually and improve operational efficiency.

- CEO Andy Jassy is focusing on reducing bureaucracy and enhancing decision-making.

- The management workforce could decrease from 105,770 to about 91,936.

- Employees will be required to return to the office full-time starting January 2025.