Amazon Layoffs 2025: Tech Giant Plans Massive Job Cuts
Major Staff Reductions Expected
Sources have indicated that Amazon intends to cut 14,000 management positions as part of a company restructuring and cost-saving move as possible by the start of 2025. The decision is expected to reduce Amazon’s management workforce by 13% globally. It will help the company save between ₹210 crore and ₹360 crore every year. The workforce changes follow previous layoffs in Amazon’s communications and sustainability departments, suggesting a larger restructuring effort.
Altered Protocol to Increase Productivity
As part of the operations restructuring, Amazon launched a “bureaucracy tipline” which gives employees a way to report non-functioning processes. The company has also instituted the following changes:
Increasing the number of direct reports for each manager.
Placing limitations on senior level hiring.
Examining pay structures.
Such modifications are in support of Amazon’s profit-focused strategy which also involves eliminating non-profitable operations, such as their ‘Try Before You Buy’ clothing line.
CEO’s Commitment to a More Efficient Workforce
CEO Andy Jassy plans to improve operations by increasing the number of employees that are individual contributors, compared to managers, by at least 15% by 2025. Jassy’s implementation seeks to minimize bureaucracy, eliminate required levels of authority, and decrease decision-making time. As part of these activities, in September 2024, Amazon announced that employees would need to be back in the office five days a week starting in January 2025.
Amazon’s Staff Numbers Over the Years
Amazon significantly boosted its employee count during the COVID-19 pandemic, from 798,000 employees in 2019 to more than 1.6 million by the end of 2021. Still, the company has cut 27,000 jobs in 2022 and 2023 and continues to downsize. In the trending news today, Amazon’s reorganization demonstrates a change in corporate strategies from the big tech companies, focusing on efficiency, cost-cutting, and profitability in a competitive environment.
