In an effort to reduce bureaucracy and streamline decision-making, Amazon CEO Andy Jassy has announced plans to increase the ratio of employees to managers by at least 15% by the end of Q1 2025, according to an internal memo. This shift reflects Amazon’s long-standing aversion to inefficiency and the involvement of excessive stakeholders in decision-making. “The [senior leadership] team and I hate bureaucracy,” Jassy said in an internal call, where he also addressed questions about Amazon’s strict return-to-office policy. He emphasized, “One reason I’m still at this company is that it’s not a political or bureaucratic place.”
An Amazon spokesperson confirmed to Southern Business Review that the move isn’t about reducing the number of managers but rather about creating a more direct line between employees and senior leadership. Following significant expansion during the pandemic, Amazon is now exploring ways to streamline management, including growing team sizes and having managers take on additional roles to ensure efficiency.
In a bid to further address bureaucracy, Jassy and his leadership team recently introduced a “bureaucracy mailbox,” where employees can submit concerns about cumbersome processes or unnecessary rules. Jassy has reportedly received over 500 emails, with the company acting on about 150 suggestions.
Experts Debate Amazon’s Approach to Management Reduction
Management experts offer varied opinions on Amazon’s strategy to increase its employee-to-manager ratio. Moshe Cohen, a senior lecturer on management at Boston University’s Questrom School of Business, noted that large companies require some level of management to ensure stability, coordination, and informed decision-making. He warned that an overly streamlined structure could risk disorganization, lack of direction, and poor team support. “The challenge is to find the right balance to optimize the positives without burdening the organization or its people,” Cohen advised.
Loren Margolis, founder of TLS Leaders and a leadership professor at Stony Brook University, sees value in a focused approach. She argues that Amazon should only consider reducing management layers under specific conditions, such as addressing underperformance in managers or if financial agility demands cost cuts. However, she cautioned against reducing middle management solely to eliminate bureaucracy, emphasizing that “middle managers hold critical knowledge and empower frontline teams, making them essential to the company’s success.”
Margolis advises Amazon employees concerned about potential managerial changes to learn as much as possible about processes, decisions, and leadership within the company, positioning themselves for success amid organizational shifts.
