Amazon has already begun its 2025 layoffs in phases. In January, the North American Stores division lost 200 jobs, followed by reductions in the communications and sustainability teams.

Amazon’s layoffs have been brewing since last quarter, but 2025 could bring a seismic shift. If industry whispers hold true, the e-commerce giant is preparing to cut up to 14,000 managerial positions by the end of March. This move marks one of the largest managerial shake-ups in recent tech history, reinforcing the reality that even the biggest players aren’t immune to downsizing.

A History of Cost-Cutting Measures

Under CEO Andy Jassy, Amazon has aggressively pursued cost-cutting measures since he succeeded Jeff Bezos in 2021. The company, which saw rapid workforce expansion during the pandemic—reaching 1.6 million employees by the end of 2021—has since been trimming its ranks. Amazon laid off over 27,000 employees in 2022 and 2023, primarily in corporate roles, as part of Jassy’s strategy to “rein in costs.”

By late 2024, Amazon’s global workforce stood at around 1.5 million, including approximately 350,000 corporate employees and over a million frontline workers in warehouse and delivery roles. The 2025 layoffs, however, signal a shift—not just in numbers but in the composition of affected roles. This time, it’s managers who are on the chopping block.

Flattening the Hierarchy

In October 2024, a Morgan Stanley report suggested that Amazon was planning to eliminate 14,000 managerial positions by the end of Q1 2025. If executed, the move would reduce the worker-to-manager ratio by 15%, flattening the organization and potentially saving Amazon up to $3.5 billion annually.

Jassy has been vocal about his vision for a leaner, faster Amazon. He has even framed the restructuring as an effort to make Amazon the “world’s largest startup.” To back this vision, the company has reportedly introduced a bureaucracy tipline, allowing employees to report inefficiencies among colleagues—a controversial move that has sparked internal debate.

A Series of Layoffs Across Departments

Amazon has already begun its 2025 layoffs in phases. In January, the North American Stores division lost 200 jobs, followed by reductions in the communications and sustainability teams. While Amazon brands these as “streamlining” efforts, they appear to be precursors to the larger wave of managerial layoffs.

Why the Cuts?

Several factors are driving this latest round of layoffs:

• Cost Efficiency: Amazon managers earn between $200,000 and $350,000 annually. Cutting 14,000 managerial positions could yield substantial savings.
• AI and Automation: The company is increasingly investing in AI-driven automation, reducing the need for managerial oversight.
• Economic Pressures: Despite strong job market indicators, investors prioritize profitability over workforce expansion.

Return-to-Office Mandate: The recent push for in-office work is speculated to be a quiet strategy for voluntary attrition.