Amazon is preparing for a major workforce restructuring, according to a recent internal memo from CEO Andy Jassy. The company aims to cut the number of managers by 15 percent across its departments by the end of Q1 2025. Jassy indicated that these changes are designed to streamline operations and increase efficiency.

The memo outlined that reducing managerial layers and increasing the ratio of individual contributors will result in a more agile and effective organizational structure. Jassy emphasized that fewer managers would help flatten the organizational hierarchy, empower frontline employees, enhance decision-making, and cut down on bureaucracy.

Although Amazon presents the restructuring as a move to boost operational efficiency and employee ownership, it is likely to lead to additional job cuts. This announcement follows significant layoffs in 2023, when 27,000 employees were let go as part of cost-cutting efforts. The anticipated changes may heighten concerns among Amazon staff, given the company's recent history of downsizing.

Jassy also noted that Amazon’s People Experience and Technology (PxT) team will collaborate with leadership to implement these changes, with the goal of enabling employees to work more quickly and make decisions that directly benefit customers.

In addition to workforce changes, Amazon will also be altering its work policy. Starting January 2, 2025, corporate employees will be required to work from the office five days a week, shifting away from the current hybrid model that allows three days of in-office work per week.