Amazon To Cut 14,000 Jobs In Mega Cost-Saving Drive: Report

Amazon To Cut 14,000 Jobs In Mega Cost-Saving Drive: Report

  • 19.03.2025 07:11
  • ndtv.com
  • Keywords: Amazon, Cost-cutting, Layoffs, Managerial Positions, Operational Efficiency

Amazon plans to cut 14,000 managerial jobs by early 2025 as part of cost-saving measures. The company introduced a "bureaucracy tipline" for employees to report inefficiencies and aims to reduce bureaucracy under CEO Andy Jassy's strategy to streamline operations and improve efficiency.

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Amazon is cutting 14,000 jobs as part of a cost-saving drive. This reflects broader restructuring plans and a shift in focus to core business areas.

Context

Amazon Job Cuts Analysis

Key Facts

  • Amazon plans to cut 14,000 managerial jobs by early 2025, representing a 13% reduction in its global management workforce.
  • The layoffs aim to save between Rs 210 crore and Rs 360 crore annually.
  • Total managers will drop from 105,770 to 91,936.

Cost Implications

  • The restructuring is expected to streamline operations and improve profitability.
  • Amazon introduced a "bureaucracy tipline" for employees to report inefficiencies.

Strategic Shifts

  • New directives include:
    • Expanding the number of direct reports per manager.
    • Limiting senior-level recruitment.
    • Reviewing compensation structures.
  • The company is discontinuing non-core initiatives like its 'Try Before You Buy' clothing program and rapid brick-and-mortar delivery service.

Workforce Changes

  • Amazon's workforce grew significantly during the COVID-19 pandemic, expanding from 798,000 employees in 2019 to over 1.6 million by 2021.
  • The company has already cut 27,000 jobs in 2022 and 2023.

Industry Context

  • This restructuring aligns with broader trends of cost-cutting in the tech industry post-pandemic.
  • Amazon CEO Andy Jassy aims to increase the ratio of individual contributors to managers by at least 15% by 2025, reducing bureaucracy.

Competitive Landscape

  • The move reflects a shift toward operational efficiency and profitability, likely intensifying competition in the e-commerce sector.

Long-Term Effects

  • Streamlined decision-making could enhance Amazon's agility but may also risk over-bureaucratization if not managed carefully.

Regulatory Considerations

  • No immediate regulatory impacts noted, though labor market trends may attract scrutiny from authorities.