Amazon: On the verge of major changes
Amazon, one of the world’s largest e-commerce and technology companies, is making major changes to its management structure. As a result of this change, many managers are likely to lose their jobs. However, Amazon’s initiative is not only to reduce the number of managers, but also to increase the speed of work and save costs.
How many manager jobs will go?
According to Amazon’s plan, about 14,000 managers may lose their jobs. Currently, 7% of Amazon’s employees work as managers. This number will decrease significantly in the coming year.
What is the reason for this decision?
Amazon wants to increase the number of employees directly involved in work. Having many managers takes time to make decisions and slows down the pace of work. CEO Andy Jassy said that they want to create an easier and faster work environment.
How much will be saved?
Amazon costs about $200,000-300,000 per year for each manager. If Amazon reduces the jobs of 14,000 managers, it will be able to save about $3 billion a year.
Amazon’s future goals
Amazon wants its organization to be stronger. The responsibilities of direct employees will be increased by reducing additional levels of managers. This will speed up work and make the organization more efficient.
In short
This initiative by Amazon will reduce their costs and increase efficiency. Such changes are important for the survival of large companies. Amazon now wants to become a faster, more cost-effective and efficient organization.
In your opinion, will this decision be good for Amazon?
