Amazon is set to lay off around 14,000 managers as part of a restructuring initiative aimed at improving operational efficiency and cutting costs. This move represents approximately 13% of its management workforce, with the company expecting to complete the job reductions by early 2025.
Why Amazon is Reducing Its Workforce
The layoffs are part of Amazon’s ongoing efforts to streamline decision-making processes and reduce bureaucracy. CEO Andy Jassy has directed leadership teams to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025.
By eliminating excess management layers, Amazon aims to improve efficiency, speed up internal operations, and achieve annual savings estimated between $2.1 billion and $3.6 billion.
Departments Affected
The job cuts will impact multiple areas within Amazon, including:
- Corporate Communications and Sustainability – Amazon previously confirmed layoffs in these divisions as part of its restructuring efforts.
- Wondery Podcast Unit – The entertainment division saw job reductions in February 2025, affecting content and advertising teams.
- Retail and Cloud Services – While these core business areas remain mostly stable, the restructuring could lead to further adjustments.
Additionally, Amazon has introduced a "bureaucracy tipline" that allows employees to report inefficiencies, underscoring the company’s commitment to streamlining operations.
Employee Support and Future Outlook
Amazon has assured that affected employees will receive financial support, extended healthcare benefits, and job-placement assistance. Some may be offered opportunities within other parts of the company.
Despite these layoffs, Amazon remains focused on its long-term goals, including increasing its investment in artificial intelligence and cloud services. The company continues to work toward achieving carbon neutrality by 2040 and transitioning to 100% renewable energy by 2025.
These workforce reductions reflect Amazon’s strategy to remain competitive in an evolving tech landscape, balancing cost-cutting measures with future growth initiatives.
