Amazon.com Inc. CEO Andy Jassy has revealed a significant organisational shakeup designed to streamline the company’s management structure and bring employees back to the office full-time starting in January. The move, which affects one of the world’s largest online retail and cloud-computing companies, comes in response to growing internal concerns about operational inefficiencies, according to a Bloomberg report.
The changes were announced in a memo to employees on September 16, with Jassy highlighting how Amazon’s internal processes have become bogged down by unnecessary layers of management and bureaucracy, the report added.
Amazon to simplify management structure
In the memo, Jassy acknowledged the challenges that many employees have been voicing for years, noting that excessive deliberation, redundant meetings, and too many levels of approval had become commonplace. “Pre-meetings for the pre-meetings for the decision meetings, a longer line of managers feeling like they need to review a topic before it moves forward,” Jassy wrote, highlighting the need for change,” as per the report.
As part of the restructuring, each major division within Amazon must increase the ratio of individual contributors to managers by 15% by March 2025. This adjustment is aimed at empowering employees to make decisions more efficiently, cutting through the red tape that has slowed progress. In an additional step to fight bureaucracy, Jassy introduced a new “bureaucracy tipline,” where employees can report unnecessary procedures, the Bloomberg report added.
“We want to operate like the world’s largest startup,” Jassy emphasised in his message, adding that the company must prioritise innovation, fast decision-making, and strong collaboration,” the Bloomberg report added, citing the internal memo.
Mandatory return to office sparks reaction
Another major component of Jassy’s announcement is Amazon’s new return-to-office policy, which mandates that all office employees return to in-person work five days a week starting in January 2024. Previously, Amazon had required workers to be in the office at least three days per week, with flexibility for some remote positions. Exceptions to this new policy will be considered for extenuating circumstances or for roles that were already approved for remote work, as per the report.
“We understand that some of our teammates may have set up their personal lives in such a way that returning to the office consistently five days per week will require some adjustments,” Jassy wrote, giving employees time to prepare for the change.
Amazon Inc’s mishaps from the past
A report from The Information in 2022 revealed that, while Amazon promoted the use of cameras and sensors to track customer purchases, the company also employed hundreds of workers in India to monitor and verify what customers were taking. These remote workers acted as virtual cashiers, reviewing transactions and ensuring accuracy. The report indicated that over 1,000 workers were involved in this process, taking on tasks traditionally performed by local employees and effectively outsourcing the role of cashiers.
