MYNORTHWEST NEWS

Why is Amazon CEO Andy Jassy cutting managers, streamlining processes?

Nov 7, 2024, 3:01 PM | Updated: 3:01 pm

Photo: Andy Jassy, Amazon president and CEO, attends the premiere of "The Lord of the Rings: The Ri...

Andy Jassy, Amazon president and CEO, attends the premiere of "The Lord of the Rings: The Rings of Power" at The Culver Studios. (File photo: Jordan Strauss/Invision/AP)

(File photo: Jordan Strauss/Invision/AP)

Amazon CEO Andy Jassy announced earlier this week the company plans to reduce the number of managers. He said this move aims to speed up decision-making processes and preserve Amazon’s unique culture. Jassy believes that excessive layers of management are slowing things down, according to Business Insider.

Last September, Jassy initially revealed these changes.

“Overall, I like the direction in which we’re heading and appreciate the hard work and ingenuity of our teams globally,” he said.

Amazon’s leadership emphasized the company’s ongoing growth and innovation across various sectors, including AWS, Advertising, Prime Video and new investment areas like GenAI, Kuiper and Healthcare.

Related news: Part of Amazon heads east from Seattle to Bellevue

To address concerns about organizational structure and efficiency, Amazon plans to increase the ratio of individual contributors to managers by at least 15% by the end of March 2025.

“Having fewer managers will remove layers and flatten organizations more than they are today,” the statement explained. “We want more of our teammates feeling like they can move fast without unnecessary processes, meetings, mechanisms, and layers that create overhead and waste valuable time.”

Pre-pandemic office arrangements

In addition to reducing managerial layers, Amazon is reinstating its pre-pandemic office arrangements. The company believes that being together in the office fosters better collaboration, innovation and cultural integration.

“We’ve observed that it’s easier for our teammates to learn, model, practice and strengthen our culture; collaborating, brainstorming, and inventing is simpler and more effective,” the statement noted.

The new office expectation will take effect on January 2, 2025, with assigned desk arrangements returning to locations that previously had them.

Angela Poe Russell: The irony in Amazon’s new return-to-work policy

Amazon acknowledges this transition may require adjustments for some employees.

“We understand that some of our teammates may have set up their personal lives in such a way that returning to the office consistently five days per week will require some adjustments,” the statement said.

To facilitate a smooth transition, the company’s Global Real Estate and Facilities team “is working on a plan to accommodate the new desk arrangements.”

Amazon introduces Bureaucracy Mailbox

The company also introduced a “Bureaucracy Mailbox” for employees to report unnecessary processes and bureaucracy.

“I will read these emails and action them accordingly,” the executive assured.

Jassy said these changes reflect Amazon’s commitment to operating like the world’s largest startup, focusing on customer obsession, high ownership, fast decision-making, and a collaborative culture.

“Strengthening our culture remains a top priority for the s-team and me and I think about it all the time,” the executive concluded.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here. 

MyNorthwest News

Flying for the holidays? SEA airport ranks No. 3 for fewer travel disruptions...

Regan Gallo-Fenz

Flying for the holidays? SEA Airport ranks No. 3 for fewer travel disruptions

If you're worried about flying out of Seattle-Tacoma International (SEA) airport for the holidays, a new consumer report may ease your mind. SEA ranks third among the best airports for avoiding travel disruptions, according to a ConsumerAffairs report. By utilizing U.S. Department of Transportation data from 2024 and 2025, the study ranks small, medium, and large airports, with Seattle in the large category. 

9 hours ago

veteran...

Manda Factor

Lakewood’s American Lake Veterans Golf Course helps veterans find purpose

Lake Veterans Golf Course offers more than a round of golf. It offers veterans a place to find purpose and connect with others.

11 hours ago

kentridge hs...

MyNorthwest Staff

2 transported to hospital after hazmat situation at Kent high school

Two people were transported to the hospital by ambulance after a hazmat situation at Kentridge High School.

11 hours ago

New partial joint installed on Tacoma Narrows Bridge...

Lexi Herda, KIRO 7 News

New partial joint installed on Tacoma Narrows Bridge

Some good news for drivers who regularly use the Tacoma Narrows Bridge. The Washington State Department of Transportation says the new partial joint has been installed on the aging structure.

11 hours ago

reward Lakewood (1)...

James Lynch

Reward increased to $50,000 in 2002 Lakewood murder case

The reward for information about the whereabouts of Liban Abdulkadir Sheikh has increased to $50,000.

12 hours ago

Washington dairy herd quarantined after bird flu detection...

Julie Berg, KIRO 7 News

Washington dairy herd quarantined after bird flu detection

The Washington State Department of Agriculture confirmed a detection of highly pathogenic avian influenza H5N1 in a Benton County dairy herd.

12 hours ago

Why is Amazon CEO Andy Jassy cutting managers, streamlining processes?