Amazon could cut 14,000 managers soon and save $3 billion a year, according to Morgan Stanley

Amazon's Management Restructuring Plan - Amazon plans to reduce the number of managers by approximately 13,834 roles, which could save the company between $2.1 billion to $3.6 billion next year [1][3][5] - CEO Andy Jassy aims to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025, aiming to reduce bureaucracy and improve operational efficiency [2][4] - Morgan Stanley estimates that 7% of Amazon's workforce is in management positions, with the total number of managers expected to drop from 105,770 to 91,936 by early next year [4] Cost Savings and Efficiency - The cost savings from cutting manager roles could account for 3% to 5% of Amazon's projected operating profit for 2025 [5] - Morgan Stanley assumes the annual cost per manager ranges between $200,000 to $350,000, contributing to the significant savings [5] - The restructuring is part of Amazon's broader effort to flatten the organization, remove unnecessary layers, and operate more efficiently [6] Workforce and Organizational Impact - Amazon has over 1.5 million employees globally, with a significant portion working in warehouses and logistics rather than corporate roles [6] - The company stated that it has added many managers in recent years and now is the right time to review and adjust organizational structures [4] - Amazon emphasized that the changes are aimed at strengthening the company's culture and organizations, though it declined to comment on Morgan Stanley's specific projections [4]