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

Seattle restaurant owner sentenced...

KIRO 7 News Staff

Seattle restaurant owner sentenced to 13 months for $1.4 million tax fraud

The owner and operator of Single Shot restaurant in Seattle’s Capitol Hill neighborhood was sentenced Monday in U.S. District Court to 13 months in prison and three years of supervised release for failing to pay over $1.4 million in employment and payroll taxes.

60 minutes ago

Housing Hope Everett...

MyNorthwest Staff

Housing Hope breaks ground on its first affordable housing for older adults in Everett

Snohomish County nonprofit Housing Hope broke ground Monday on a 67-unit affordable housing community for adults 55 and older in north Everett. It's the organization's first project built specifically for older adults.

2 hours ago

Seattle Public Schools...

Luke Duecy

Seattle Public Schools identifies 21 schools in potential merger plans

Seattle Public Schools is considering merging 21 schools as the district grapples with declining enrollment and disparities in classroom conditions.

3 hours ago

Seattle restaurant owner sentenced...

KIRO 7 News Staff

Everett man sentenced to 20 years for stabbing middle school student

An Everett man was sentenced to 20 years in prison Tuesday for stabbing a 13-year-old middle school student in North Everett in January 2025.

3 hours ago

ferguson fraud prevention...

Michael Strite

Governor Bob Ferguson creates Washington’s first chief fraud prevention officer

Gov. Bob Ferguson signed an executive order Monday that creates Washington's first chief fraud prevention officer.

4 hours ago

West Seattle Social Housing...

Michael Strite

Seattle Social Housing Developer to buy West Seattle apartment building for $68 million

Seattle's voter-created social housing agency is buying its second apartment building, a six-story complex with nearly 200 homes in West Seattle.

4 hours ago

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