Amazon freezes hiring budget for its big retail business this year

Core Insights - Amazon's retail business is maintaining a flat hiring budget for 2024, focusing on operating expenses rather than headcount targets [1][2][5] - The changes apply only to corporate employees in the retail division, excluding warehouse and Amazon Web Services staff [3] - CEO Andy Jassy's strategy emphasizes efficiency and profit margins, with a reported record profit of $59 billion in 2024, nearly double that of 2023 [6][5] Hiring Strategy - The hiring budget will be scrutinized, requiring strong justification for any increases, shifting focus from headcount to operating expenses [2][7] - This approach allows for tighter financial control and encourages managers to be more flexible with compensation expenses [7][12] - Managers can hire high-cost talent without the pressure of headcount limits, potentially leading to leaner teams [12][13] Cost-Cutting Measures - Amazon has been on a cost-cutting spree, reducing its workforce from a peak of 1.6 million to 1.55 million, with at least 27,000 job cuts since late 2022 [11] - The retail division is expected to continue cost reductions into 2025 to support investments in new business ventures [14] - New financial reporting tools have been implemented to track headcount and operating expenses more effectively [10]