Is Amazon Preparing For Another Round Of Layoffs? Here's What CEO Said

Jassy claims that this reorganisation will enhance decision-making, empower workers at the local level, cut down on bureaucracy, and eventually enable the business to provide better customer service.

Amazon CEO Andy Jassy recently told employees in a memo that the company is probably getting ready for another round of layoffs. Jassy stated in the internal communication that significant changes are about to be implemented by the corporation to simplify its staff. By the end of Q1 2025, the tech giant wants to cut the number of managers in each of its departments by fifteen per cent.

The memo clarified that fewer managers and a higher percentage of individual contributors will result in a more effective and flexible organisational structure. "Having fewer managers will remove layers and flatten organisations more than they are today," Jassy wrote in the memo.

He claims that this reorganisation will enhance decision-making, empower workers at the local level, cut down on bureaucracy, and eventually enable the business to provide better customer service.

Amazon suggests recent changes are introduced to enhance efficiency and foster greater ownership among its employees, but this likely indicates another wave of job cuts. Following significant layoffs in 2023, when 27,000 employees were let go as part of cost-cutting efforts, the news of these changes is likely to raise concerns among Amazon’s workforce, especially in light of the company’s track record with downsizing.

Jassy noted that the People Experience and Technology (PxT) team will collaborate closely with Amazon's leadership to implement these changes. He emphasised that the aim is to evolve the organisation so that employees can act more swiftly and make decisions that directly impact customers.

While the memo didn’t explicitly announce specific job cuts, the emphasis on "flattening" the organisational structure and increasing the number of individual contributors suggests that layoffs may be forthcoming. Additionally, the memo revealed a significant shift in work policy: starting January 2, 2025, corporate staff will be required to return to the office five days a week, moving away from the hybrid model that was established during the pandemic. Currently, employees are only expected to work in the office three days a week.