Andy Jassy, CEO, Amazon, Told Town Hall staff: We're Rethinking Our Promotion Strategy

At a recent internal town hall meeting, Amazon CEO Andy Jassy highlighted a major change in the company's promotion strategy, stressing that growing big teams will no longer be the route to promotion at the e-commerce behemoth. Jassy informed staff that Amazon is actively altering its perspective on promotions, emphasising that the best leaders are those that do the most with the least number of resources needed to complete the task, according to a recording of last week's all-hands meeting that a media house was able to access.

Changing the Entire Dynamics of Promotion                        

The CEO clarifies that building a massive workforce and domain is not the path to success at Amazon. Having a large team is not rewarded. Amazon wants to do a lot more things and be resourceful. The CEO's remarks are in line with Amazon's recently concluded plan to minimise bureaucracy and management layers by increasing the proportion of individual contributors to managers by 15% throughout its organisations. Every new project shouldn't require 50 or more people to complete, Jassy told staff members, pointing out that some of Amazon Web Services' most popular products were first introduced with teams of only a dozen individuals.

Meritocracy over Bureaucracy

Meritocracy is more important than bureaucracy, according to the Amazon CEO, who also stated that employee charisma is not a factor. It doesn't matter if they are adept at sideways or upward management. What the company does for its clients is what counts. It's what the business rewards. Recognising the fierce competition Amazon faces from the most technologically proficient, most hungry businesses, including startups operating around the clock, Jassy also asked staff to act like owners and move quickly. "What would I do if this were my company?" Jassy asked the employees. By the way, it's your business. This encompasses our entire organisation," urging people to stay cognisant of both internal objectives and external advancements.

Amazon Plans to Eliminate 14,000 Managerial Positions

By early 2025, Amazon plans to let off 14,000 administrative staff members as part of a comprehensive restructuring strategy meant to boost productivity and cut expenses. It is anticipated that Amazon will save between $2.1 billion and $3.6 billion a year as a result of the decision, which represents a 13% drop in the company's global management personnel. Following recent layoffs in Amazon's sustainability and communications departments, this most recent round of layoffs represents a larger change in the company's corporate structure. The choice is in keeping with CEO Andy Jassy's continuous attempts to reduce organisational complexity and streamline processes. In an effort to improve operational efficiency and speed up decision-making, Amazon intends to raise the proportion of individual contributors to managers by at least 15% by the first quarter of 2025. Jassy has been outspoken about cutting back on bureaucratic layers that impede operations, according to sources Business Insider reported. This supports his goal of having Amazon operate more like a quick-thinking company.