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In an all-hands meeting, Amazon CEO Andy Jassy tells employees why he wants fewer managers: 'I hate bureaucracy'

Nov 05, 2024 - businessinsider.com
Amazon plans to reduce the number of managers in an effort to eliminate bureaucracy and speed up decision-making, according to CEO Andy Jassy. This move follows a pandemic hiring spree that added layers and slowed the company's culture. The goal is to increase the ratio of individual workers to managers by 15% by the end of the first quarter of 2025. This could result in role eliminations as redundant positions are identified.

As part of this plan, Amazon has also introduced a "Bureaucracy Mailbox" where employees can raise concerns about unnecessary processes or rules. Jassy believes these changes are necessary for Amazon to adapt to the rapidly changing technology landscape and growing competitive pressure, especially with artificial intelligence. He emphasized the need for the company to be well set up to innovate and collaborate together.

Key takeaways:

  • Amazon plans to reduce the number of managers in an effort to eliminate bureaucracy and speed up decision-making.
  • The decision follows a pandemic hiring spree that added layers and slowed the company's culture.
  • CEO Andy Jassy believes this move will allow for higher ownership and quicker movement within the company.
  • Amazon also introduced a 'Bureaucracy Mailbox' where employees can raise concerns about unnecessary and excessive processes or rules.
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