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Why is Amazon CEO Andy Jassy cutting managers, streamlining processes?

Nov 7, 2024, 3:01 PM | Updated: 3:01 pm

Photo: Andy Jassy, Amazon president and CEO, attends the premiere of "The Lord of the Rings: The Ri...

Andy Jassy, Amazon president and CEO, attends the premiere of "The Lord of the Rings: The Rings of Power" at The Culver Studios. (File photo: Jordan Strauss/Invision/AP)

(File photo: Jordan Strauss/Invision/AP)

announced earlier this week the company plans to reduce the number of managers. He said this move aims to speed up decision-making processes and preserve Amazon鈥檚 unique culture. Jassy believes that excessive layers of management are slowing things down, according to

Last September, Jassy initially revealed these changes.

鈥淥verall, I like the direction in which we鈥檙e heading and appreciate the hard work and ingenuity of our teams globally,鈥 he said.

Amazon鈥檚 leadership emphasized the company鈥檚 ongoing growth and innovation across various sectors, including AWS, Advertising, Prime Video and new investment areas like GenAI, Kuiper and Healthcare.

Related news: Part of Amazon heads east from Seattle to Bellevue

To address concerns about organizational structure and efficiency, Amazon plans to increase the ratio of individual contributors to managers by at least 15% by the end of March 2025.

“Having fewer managers will remove layers and flatten organizations more than they are today,” the statement explained. “We want more of our teammates feeling like they can move fast without unnecessary processes, meetings, mechanisms, and layers that create overhead and waste valuable time.”

Pre-pandemic office arrangements

In addition to reducing managerial layers, Amazon is reinstating its pre-pandemic office arrangements. The company believes that being together in the office fosters better collaboration, innovation and cultural integration.

鈥淲e鈥檝e observed that it鈥檚 easier for our teammates to learn, model, practice and strengthen our culture; collaborating, brainstorming, and inventing is simpler and more effective,鈥 the statement noted.

The new office expectation will take effect on January 2, 2025, with assigned desk arrangements returning to locations that previously had them.

Angela Poe Russell: The irony in Amazon鈥檚 new return-to-work policy

Amazon acknowledges this transition may require adjustments for some employees.

鈥淲e understand that some of our teammates may have set up their personal lives in such a way that returning to the office consistently five days per week will require some adjustments,鈥 the statement said.

To facilitate a smooth transition, the company鈥檚 Global Real Estate and Facilities team 鈥渋s working on a plan to accommodate the new desk arrangements.鈥

Amazon introduces Bureaucracy Mailbox

The company also introduced a 鈥淏ureaucracy Mailbox鈥 for employees to report unnecessary processes and bureaucracy.

鈥淚 will read these emails and action them accordingly,鈥 the executive assured.

Jassy said these changes reflect Amazon鈥檚 commitment to operating like the world鈥檚 largest startup, focusing on customer obsession, high ownership, fast decision-making, and a collaborative culture.

鈥淪trengthening our culture remains a top priority for the s-team and me and I think about it all the time,鈥 the executive concluded.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, and email him here.听

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Why is Amazon CEO Andy Jassy cutting managers, streamlining processes?