E-commerce giant Amazon is planning to slash 14,000 managerial positions by early 2025 in its layoffs plan as part of its attempt to cut costs, media reports said.
According to reports, Amazon will save between $2.1 billion and $3.6 billion annually if it implements the layoffs.
This 13% reduction in its global management workforce will bring the number of managers down from 105,770 to 91,936, reported The Financial Express.
The latest job cut, if implemented, will follow the e-commerce firm’s recent layoffs in communications and sustainability units.
Streamlining Operations
The company is reportedly targeting to streamline operations and restructure its teams.
Quoting Business Insider, The Financial Express reported that the job cuts align with CEO Andy Jassy’s strategy to simplify decision-making and enhance efficiency.
A Morgan Stanley report projects that Amazon’s restructuring could eliminate around 13,834 managerial roles by early next year, leading to substantial cost savings, the newspaper reported.
Amazon had expanded its workforce during the COVID-19 pandemic period when it surged from 798,000 employees in 2019 to over 1.6 million by the end of 2021, media reports said.
The company has since recalibrated its staffing needs, with previous layoffs cutting 27,000 jobs in 2022 and 2023, the newspaper reported.
Morgan Stanley Planning Job Cuts
Not only Amazon, but even Morgan Stanley is planning to slash 2,000 jobs by the end of this month.
According to reports, the step will be taken as part of the firm’s restructuring initiatives to enhance operational efficiency.
The cuts will take place across the firm, with the exception of its roughly 15,000 financial advisers, Bloomberg reported quoting people familiar with the matter.
The plan for reductions at the bank, which has about 80,000 employees, was set in motion before the recent market tumult, the source said.
(With inputs from IBNS)
