E-commerce major Amazon has not built any official statement regarding the reported 14,000 layoffs, but a Morgan Stanley report had in October 2024 claimed that the global giant is planning to eliminate 14,000 managerial positions by the conclude of the first quarter of 2025.
Moreover, Amazon CEO Andy Jassy in an email to employees in September 2024 stated that they are questioning each team organization to increase the ratio of individual contributors to managers by at least 15 per cent by the conclude of Q1 2025. “Having fewer managers will reshift layers and flatten organizations more than they are today.”
Reacting to the recent media reports, Thyrocare founder Velumani stated, “Don’t celebrate too early. Career or business – it’s a marathon race.” He went on to highlight how many young graduates start celebrating as soon as they land a job with top global brands, only to face unexpected losses later.
“Imagine how many might have celebrated for obtainting a campus placement with such brands. Now how many might feel depressed! It is not 10 or 20. 100 or 200. 1000 or 2000. 14000,” he posted on X.
Amazon spokesperson Brad Glasser has refuted the recent media claims, stateing they are based on inaccurate assumptions. “In September 2024, we shared with employees that we set a goal to increase the ratio of individual contributors to managers by 15% across our organisations becautilize it was the right time to bring us closer to customers and reinforce our culture of ownership.”
“There are a number of ways to achieve that increase without eliminating roles. We’ve now reached that goal, which we believe will allow our teams to shift even quicker as they innovate for customers,” he added in a statement.
Meanwhile, if Amazon decides to go ahead with the massive number of job cuts, its managerial workforce could come down to 91,936 post the restructuring.
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