TapTechNews October 6th news, according to a Morgan Stanley report, Amazon plans to cut 14,000 management positions by early next year, thereby saving about 3 billion US dollars (TapTechNews note: currently about 21.17 billion yuan) annually.
The report said that this measure is part of the strategy proposed by Amazon CEO Andy Jassy, which aims to improve operational efficiency by increasing the ratio of individual contributors to managers by at least 15% by March 2025.
Jassy emphasized the importance of cultivating a culture characterized by a sense of urgency, responsibility, quick decision-making, resourcefulness, frugality, and collaboration, with the goal of positioning Amazon as the world's largest startup company.
The report also mentioned that Jassy launched a bureaucracy reporting hotline to allow employees to report unnecessary procedures that hinder their work.
Morgan Stanley estimates that this round of layoffs may reduce the number of Amazon's managers worldwide from about 105,770 to about 91,936, because the estimated annual cost per manager is between 200,000 and 350,000 US dollars (currently about 1.411 million to 2.47 million yuan), so it can save 2.1 billion to 3.6 billion US dollars (currently about 14.819 billion to 25.404 billion yuan) annually, accounting for about 3% to 5% of Amazon's expected operating profit in 2025.
The report states that Amazon acknowledges that it has recently expanded its management team, and the company has not specified any clear layoff plans. This reorganization aims to simplify operations and minimize bureaucratic obstacles, and it is possible to achieve the expected ratio change through redistribution rather than direct layoffs.
At the same time, Amazon announced its plan to require employees to return to the office full-time (five days a week) starting from January next year.