- Amazon plans to reduce manager-to-worker ratio by 15%
- Internal document reveals strategy to streamline decision-making processes
- Restructuring may lead to role eliminations across the organization
Flattening the Org Chart
Amazon has unveiled a bold initiative to streamline its organizational structure by increasing the ratio of individual contributors to managers by 15% before Q1 2025 ends.
This move, announced by CEO Andy Jassy, seeks to eliminate unnecessary layers and processes that have accumulated during the company’s rapid growth.
Cutting Through the Red Tape
An internal document obtained by Business Insider reveals the rationale behind this decision. Amazon believes the current structure has led to inefficiencies such as excessive pre-meetings and elongated decision-making processes.
By flattening the hierarchy, the e-commerce giant aims to empower frontline employees and accelerate decision-making closer to customer-facing roles.
Potential Shake-up Ahead
The document acknowledges that this restructuring may result in role eliminations as redundant positions are identified. Senior leaders across Amazon will work closely with HR to implement these changes, focusing on creating a more agile, customer-centric organization.
The company emphasizes that any adjustments will be communicated at the team level, signaling a potentially significant shake-up in Amazon’s management landscape.
