Amazon is restructuring its workforce to concentrate on key business areas, resulting in an expected reduction of around 14,000 management positions. Although the company is performing well, this reduction is attributed to the transformative nature of AI, which, according to Beth Galetti, Amazon’s Senior Vice President, is the most innovative technology since the internet. The organization aims to simplify its structure to grant more autonomy to each unit while reducing the number of mid-level managers.
This decision aligns with CEO Andy Jassy’s strategy to operate like the world’s largest startup. Amazon has been gradually reducing mid-level management for several years to cut labor costs; however, it is exploring methods to increase business value through this reorganization. Reports indicate that this workforce reduction will impact various departments, including Amazon Web Services and Human Resources, with estimates suggesting the cuts could reach as high as 30,000. Consequently, Amazon may also initiate hiring for approximately 16,000 positions or facilitate internal reallocations during this restructuring phase.
👉 Pročitaj original: CIO Magazine
