Amazon’s CEO Andy Jassy has outlined a series of structural changes aimed at improving speed, decision-making, and collaboration across the global e-commerce giant. The changes, which were communicated to employees in a message on Sept. 16, will see the company reduce the number of managers and require staff to return to the office full-time by early 2025.
Jassy highlighted the company’s ongoing growth in areas such as Amazon Web Services (AWS), advertising, and Prime Video, while also pointing to newer investments in healthcare and artificial intelligence as evidence of the company’s evolving business strategy.
Despite this progress, Jassy noted that the company’s rapid expansion over the past several years had led to increased bureaucracy and a dilution of ownership at the individual level.
“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,” Jassy wrote, stressing the need for greater efficiency in Amazon’s operations. As part of this effort, he announced that the company will be increasing the ratio of individual contributors to managers by at least 15% by the end of Q1 2025.
Jassy expressed confidence that reducing management layers would improve decision-making and empower employees on the front lines to take greater ownership. “If we do this work well, it will increase our teammates’ ability to move fast, clarify and invigorate their sense of ownership,” he said.
In addition to streamlining its management structure, Amazon will also revert to pre-pandemic office arrangements. While the company has allowed employees to work remotely up to two days a week since the onset of COVID-19, Jassy emphasized that being in the office is critical for fostering collaboration and maintaining Amazon’s culture. “We’ve observed that it’s easier for our teammates to learn, model, practice, and strengthen our culture” when working in person, Jassy wrote, adding that the company’s experience over the past 15 months has reinforced this belief.
The return-to-office mandate will come into effect on Jan. 2, 2025. Jassy acknowledged that this change may require adjustments for some employees, but said the company will provide support during the transition.
The structural changes and office mandate reflect Amazon’s broader effort to balance innovation and efficiency as it continues to grow, he said. Jassy closed his message by underscoring the importance of maintaining Amazon’s unique culture, which he credited as a driving force behind the company’s success.
“I continue to believe that we are all here because we want to make a difference in customers’ lives, invent on their behalf, and move quickly to solve their problems,” Jassy said.
