From the article: Amazon’s plan to have fewer managers could result in huge job cuts and cost savings.
CEO Andy Jassy said last month that he wanted to increase the ratio of individual contributors to managers by at least 15% by the end of the first quarter of 2025. Jassy argued that having fewer managers would remove unnecessary organizational layers and help Amazon move faster without bureaucratic hurdles.
In a note published on Thursday, Morgan Stanley estimated that this effort could lead to the elimination of roughly 13,834 manager roles by early next year, resulting in cost savings of $2.1 billion to $3.6 billion.
Amazon told Business Insider that it had “added a lot of managers” in recent years and that “now is the right time” to make this change. Every team within Amazon will review its structure, and it’s possible that organizations may eliminate roles that are no longer required, the company said, adding that the change was about “strengthening our culture and organizations.” It declined to comment on Morgan Stanley’s specific projections.
LifeIsAnAnimal on
Every company is trying to flatten organization structure right now.
upyoars on
thats all these consulting and banking companies do.. layoffs layoffs layoffs for everyone! oh and we added 5 million fast food jobs to the economy, unemployment went down! Economy is doing good!
Now go enjoy your life with $10/hr pay!
DiligentBits on
Step in the right direction 👍🏻 once we get rid of those rich enablers and make them join the barracks, I mean the truly working class, we can unite and hit those untouchable bastards.
cdurgin on
damn, Amazon managers make over $200,000 a year? That’s assuming that they didn’t factor in lost productivity as well. As in, all 14,000 people are considered to do nothing to help the company.
Kinda wild that amazon can basically just fund a small city where everyone makes 4x median income without any benefit to themselves. Kinda makes you wonder if they should be taxed more
Legaliznuclearbombs on
How in the world is artifical intelligence going to export my fent now ? What has this world come to ?
-not_a_knife on
This makes sense to me. It’s a meme at this point that managers don’t know what they are talking about and aren’t actually doing any work. I can safely say that my experience in tech was like that.
elfmere on
You could replace the ceo, the board and top management with AI.. shareholders would love that
Doomstik on
Most companies could cut a bunch of management and be totally fine. Idk why places thing hiring more managers will somehow make them more money when all it does is end up stressing out the people who do the actual work because now you have MORE people breathing down your neck on a day to day basis.
erc_82 on
Good thing none of the savings will benefit remaining employees or customers /s
10 Comments
From the article: Amazon’s plan to have fewer managers could result in huge job cuts and cost savings.
CEO Andy Jassy said last month that he wanted to increase the ratio of individual contributors to managers by at least 15% by the end of the first quarter of 2025. Jassy argued that having fewer managers would remove unnecessary organizational layers and help Amazon move faster without bureaucratic hurdles.
In a note published on Thursday, Morgan Stanley estimated that this effort could lead to the elimination of roughly 13,834 manager roles by early next year, resulting in cost savings of $2.1 billion to $3.6 billion.
Amazon told Business Insider that it had “added a lot of managers” in recent years and that “now is the right time” to make this change. Every team within Amazon will review its structure, and it’s possible that organizations may eliminate roles that are no longer required, the company said, adding that the change was about “strengthening our culture and organizations.” It declined to comment on Morgan Stanley’s specific projections.
Every company is trying to flatten organization structure right now.
thats all these consulting and banking companies do.. layoffs layoffs layoffs for everyone! oh and we added 5 million fast food jobs to the economy, unemployment went down! Economy is doing good!
Now go enjoy your life with $10/hr pay!
Step in the right direction 👍🏻 once we get rid of those rich enablers and make them join the barracks, I mean the truly working class, we can unite and hit those untouchable bastards.
damn, Amazon managers make over $200,000 a year? That’s assuming that they didn’t factor in lost productivity as well. As in, all 14,000 people are considered to do nothing to help the company.
Kinda wild that amazon can basically just fund a small city where everyone makes 4x median income without any benefit to themselves. Kinda makes you wonder if they should be taxed more
How in the world is artifical intelligence going to export my fent now ? What has this world come to ?
This makes sense to me. It’s a meme at this point that managers don’t know what they are talking about and aren’t actually doing any work. I can safely say that my experience in tech was like that.
You could replace the ceo, the board and top management with AI.. shareholders would love that
Most companies could cut a bunch of management and be totally fine. Idk why places thing hiring more managers will somehow make them more money when all it does is end up stressing out the people who do the actual work because now you have MORE people breathing down your neck on a day to day basis.
Good thing none of the savings will benefit remaining employees or customers /s