Amazon CEO Andy Jassy said in a message that the company is getting ready to make layoffs. Jassy detailed plans for a 15% management reduction by the end of the first quarter of 2025, among other major changes aimed at simplifying the company’s staff, in the message. The reorganization is a component of Amazon’s larger plan to reduce the number of layers in its organizational structure with an emphasis on raising the proportion of individual contributors.

Jassy emphasized that removing superfluous levels from the organization would improve decision-making and cut down on bureaucracy. He maintained that this shift would provide ground-level staff greater authority, enabling them to act more quickly and decisively, which would eventually benefit consumers. Although the letter presented these adjustments as measures to increase productivity, they will probably lead to further layoffs in the wake of the significant budget cutbacks in 2023, which resulted in the loss of 27,000 jobs.

The leadership team and the company’s People Experience and Technology (PxT) team will work together to put the improvements into effect. The message did not disclose any particular job cutbacks, but its emphasis on “flattening” the structure and boosting individual contributions raises the possibility of more downsizing.

Furthermore, Amazon is going to significantly alter its labor rules. Corporate workers will no longer be allowed to work three days a week under the present hybrid model; from January 2, 2025, they must report to work five days a week. It is anticipated that the return-to-office directive and the possibility of job losses would cause anxiety among Amazon employees as the business proceeds with its restructuring and quest for increased productivity.