E-commerce major Amazon Inc. is set to layoff 14,000 managerial jobs by early 2025 as the trillion-dollar company aims to save costs, reported multiple media outlets on Tuesday, March 18.
As per the reports, the company seeks to save between $2.1 billion and $3.6 billion annually after this 13 per cent workforce reduction. These managerial job cuts will bring down the number of managers in the firm to 91,936 managers, compared to the current level of 1,05,770 managers.
Managing Partner and Chief Investment Officer (CIO) of Complete Circle, Gurmeet Chadha, in a social media post on platform X, called out Amazon, expressing that these job cuts are just full of industry jargon and advancement of artificial intelligence.
“Amazon is laying off 10000 more people after laying off 18k in November. They call their HR heads as People experience head, chief people officer and fancy names.. employees r called families. Sab drama!!” said Chadha.
The CIO also highlighted that AI or any other technology which brings misery to people is ‘useless’.
“Call me old school but I value people more than anything else. Any innovation as Guru Nanak Devji said, shud keep people welfare ( Sarbat da bhalla) as the core,” he said.
Amazon’s plan for job cuts
According to a Business Insider report from Janaury 2025, Amazon told some of its managers to increase their direct reports, make fewer senior recruitments, and reduce the payments for some employees, as per people aware of the development.
In September 2024, Amazon’s Chief Executive Officer (CEO) Andy Jassy announced his plans to increase the ratio of individual contributors to managers by 15 per cent by March 2025 end.
Reducing the layers in the corporate ladder, Amazon aims to “decrease bureaucracy” and increase speed in the company, reported the news portal.
This move from the firm intends to shake up the management structure completely, and layoffs are likely to impact thousands of Amazon corporate employees, according to the news portal’s report.
Amazon shares were trading 1.28 per cent lower at $193.36 ahead of Tuesday’s Wall Street Session, compared to $195.74 at the previous US market close.