Amazon to cut 14,000 management positions by 2025

Amazon plans to lay off about 14,000 managerial employees by early 2025. This move represents a significant cut, reducing its management workforce by 13%. The changes will impact various divisions including Amazon Web Services, retail operations, and human resources. The layoffs are part of Amazon's cost-cutting strategy, aiming to improve efficiency through automation and artificial intelligence. The company hopes to save between ₹210 crore and ₹360 crore each year with these reductions. CEO Andy Jassy emphasizes simplifying decision-making and streamlining operations. Managers will be encouraged to increase their direct reports, limit new senior hires, and review pay structures. This approach is intended to reduce bureaucracy and enhance profitability. Additionally, the sales team at AWS has been instructed to pause new managerial hires until they fully understand the restructuring. As of 2024, Amazon employs around 1.55 million people, showing a slight increase from previous numbers despite the upcoming layoffs.