E-commerce giant Amazon is set to lay off 14,000 employees in its management department as part of a cost-cutting initiative. This accounts for 13% of Amazon’s global workforce, with the company aiming to save between ₹210 crore to ₹360 crore annually, according to The Financial Express.
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Major Workforce Reduction in Management
With this move, Amazon’s management workforce will shrink from 1.05 lakh to 91,000 employees. The layoffs are part of the company’s broader restructuring strategy, which previously impacted jobs in the communications and sustainability divisions.
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Amazon’s Restructuring Efforts
Amazon began its cost-cutting measures in January 2024, focusing on:
- Increasing direct reports handled by managers.
- Limiting senior-level hiring.
- Reviewing compensation structures.
These measures are aimed at enhancing operational efficiency and profitability.
Amazon’s Workforce Trends & CEO’s Directive
- During the COVID-19 pandemic, Amazon rapidly expanded its workforce from 7.98 lakh in 2019 to 16 lakh in 2021.
- However, in 2022 and 2023, the company laid off 27,000 employees across various departments to curb expenses.
- CEO Andy Jassy has also mandated five-day office attendance for employees starting January 2024, citing the need for faster learning and better collaboration.
As Amazon continues its restructuring, further workforce adjustments may be expected in the coming months.