Amazon Layoffs to Hit 14,000 Managerial Positions

Amazon is set to eliminate 14,000 managerial positions in 2025 as part of a broader effort to streamline its corporate structure and cut costs, according to multiple reports. The move, which is expected to reshape the company's workforce, comes as Amazon shifts its focus toward greater automation and efficiency.

According to Cybernews, Amazon currently employs around 105,770 managers across its global operations. The company’s restructuring aims to reduce this number by approximately 13%—bringing it down to roughly 91,936—while enhancing operational efficiency. The layoffs are expected to be completed by the first quarter of 2025 (yes, in March 2025).

CEO Andy Jassy has emphasized that this decision aligns with Amazon’s long-term strategy to create a more agile and cost-effective organization. In an internal memo obtained by The Times of India, Jassy stated that reducing bureaucracy and increasing the ratio of individual contributors to managers will foster a culture of speed, accountability, and collaboration.

The restructuring with massive layoffs is expected to generate significant cost savings, with estimates ranging from $2.1 billion to $3.6 billion annually, Morgan Stanley analysts reported. These savings will likely be reinvested into Amazon’s growing artificial intelligence and automation initiatives to largely automate things and reduce the human workforce.

Amazon has been increasingly shifting toward AI-driven efficiencies, with investments in logistics automation, AI-powered decision-making tools and so much more.

• Industry experts speculate that the company’s push for automation could further reduce the need for middle management roles in the coming years.

While Amazon (an eCommerce giant) has previously laid off corporate employees in response to economic challenges, this is one of its largest restructuring efforts focused specifically on management roles.

The shift could lead to increased workloads for remaining employees but may also open up new opportunities in AI and automation-related positions.

As the company continues its transition, affected employees will likely receive severance packages and career transition support.

However, the broader implications of this shift remain to be seen, particularly as Amazon redefines its corporate hierarchy in the age of AI-driven business models.