What does Amazon really think about middle management?

Amazon reduces its management structure, resulting in job cuts and potential savings. The company laid off workers in communications and sustainability teams and previously cut 200 positions in North America. CEO Andy Jassy aims to decrease middle management layers. Guidelines from Amazon Web Services instruct sales managers to increase direct reports and pause managerial hiring. Managers must now supervise at least eight team members, up from six. This shift transforms Amazon’s management structure to a diamond shape, adjusting the ratio of individual contributors to managers by 15% by the end of the first quarter of 2025. Estimates suggest a decrease in managerial positions from over 105,000 to about 92,000, saving $2.1 to $3.6 billion annually. Jassy highlighted the importance of these changes for competitiveness and encouraged employee feedback on processes.

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