A recent memo released by CEO Andy Jassy suggests that Amazon is likely preparing for another potential wave of job cuts. In the internal communication, Jassy indicated that the company is set to implement major changes aimed at streamlining its workforce. The tech giant aims to reduce the number of managers across its various departments by 15 percent by the end of the first quarter of 2025.

The memorandum highlighted that reducing the number of managers and increasing the proportion of individual contributors would make the organisational structure more efficient and agile.

Jesse wrote, “Having fewer managers will remove layers and make the organization more flat than it is today.” According to him, this restructuring will empower employees at the grassroots level, improve the decision-making process, reduce bureaucracy and ultimately help the company serve its customers better.

While Amazon has framed these changes as an effort to promote efficiency and ownership among its employees, the move likely signals another round of job cuts. This comes after a massive layoff in 2023 that saw 27,000 employees lose their jobs as part of cost-cutting measures. The announcement of these upcoming changes is expected to raise concerns among Amazon employees, especially given the company’s history of downsizing.

Jassy also explained that the company’s People Experience and Technology (PxT) team will work closely with Amazon’s leadership to implement these changes in the coming months. According to him, the goal is to develop the organization in a way that helps employees move faster and make decisions that have a direct impact on customers.

While the memo doesn’t explicitly confirm any specific job cuts, the company’s focus on “flattening” its organizational structure and increasing the number of individual contributors points to more layoffs in the future. In the same memo, Amazon has also announced a major change to its work policy.

Starting January 2, 2025, the company will require its corporate employees to work from the office five days a week, a departure from the hybrid model introduced during the pandemic. Currently, Amazon employees are only required to work from the office three days a week.