**Amazon to Lay Off 14,000 Managers by Early 2025 to Cut Costs**
Amazon Inc., the e-commerce giant, is planning to eliminate 14,000 managerial positions by early 2025 as part of its strategy to reduce costs. This decision, reported by various media outlets on March 18, aims to save the company between $2.1 billion and $3.6 billion annually through a 13% reduction in its workforce. Following these layoffs, the total number of managers at Amazon will decrease from 105,770 to 91,936.
### Cost-Cutting Measures
– **Job Cuts**: Amazon is set to lay off 14,000 managerial roles.
– **Annual Savings**: The company anticipates savings of $2.1 billion to $3.6 billion.
– **Current vs. Future Workforce**: The managerial workforce will drop from 105,770 to 91,936.
Gurmeet Chadha, Managing Partner and Chief Investment Officer of Complete Circle, criticized Amazon’s approach on social media, suggesting that the terminology used to describe the layoffs is merely industry jargon. He expressed concern over the impact of artificial intelligence on employment, stating, “Any innovation, as Guru Nanak Devji said, should keep people welfare (Sarbat da bhalla) as the core.”
### Changes in Management Structure
In January 2025, reports indicated that Amazon instructed some managers to increase their direct reports, limit senior hiring, and reduce employee compensation. CEO Andy Jassy announced plans to increase the ratio of individual contributors to managers by 15% by the end of March 2025. This restructuring aims to streamline operations and reduce bureaucracy within the company.
### Market Reaction
As of the latest trading session, Amazon’s shares were down 1.28%, trading at $193.36, compared to $195.74 at the previous market close.
**FAQ: What is the reason behind Amazon’s layoffs?**
Amazon is laying off 14,000 managerial positions to reduce costs and streamline its management structure, aiming for annual savings between $2.1 billion and $3.6 billion.
