E-commerce giant Amazon Inc. plans to lay off 14,000 managerial employees by early 2025 as part of its cost-cutting efforts, according to a report by Financial Express on Tuesday, March 18.
According to the report, Amazon aims to save between ₹210 crore and ₹360 crore per year by reducing its workforce by 13%. With these job cuts, the number of managers at the company will drop from 1,05,770 to 91,936.
Livemint has not independently confirmed this report and has contacted Amazon for a response. The story will be updated once the company provides a comment.
Amazon’s Job Cut Plans
In January, Business Insider reported that Amazon asked some managers to oversee more employees, hire fewer senior staff, and cut salaries for certain roles.
In September 2024, Amazon CEO Andy Jassy announced plans to have 15% more individual employees compared to managers by March 2025.
By cutting down management layers, Amazon hopes to reduce bureaucracy and improve efficiency, according to reports.
This decision aims to revamp Amazon’s management structure, potentially affecting thousands of corporate employees, according to reports.
As of 2024, Amazon has around 1.55 million employees, up from 1.53 million previously, based on company filings.
The report also states that the Amazon Web Services (AWS) sales team must pause hiring new managers until the restructuring process is clear.
On Tuesday, March 18, at 12:46 p.m. (EDT), Amazon’s stock was down 2.11%, trading at $191.61, compared to $195.74 at the previous U.S. market close. The stock was also trading lower in Wall Street’s pre-market session.
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