Christina Somerville - MBA, PMP’s Post

https://lnkd.in/gxpKJ6rP “Organizational experts say Amazon is a leading indicator of a new era of flattening in corporate structure, and its slashing of manager roles isn’t just about cost-cutting, but a glimpse into the future of work”. #HumanResources #Orgchart #Orgstructure #Corporate #CorporateStructure #Amazon #costcutting #manager #management #middlemanager #America #market #NorthAmerica #futureofwork

"Organizational experts say Amazon is a leading indicator of a new era of flattening in corporate structure, and its slashing of manager roles isn't just about cost-cutting, but a glimpse into the future of work." https://lnkd.in/gTnvnMpg

Organizational experts say Amazon is a leading indicator of a new era of flattening in corporate structure, and its slashing of manager roles isn't just about cost-cutting, but a glimpse into the future of work. https://lnkd.in/eR9CdSAZ

Organizational experts say Amazon is a leading indicator of a new era of flattening in corporate structure, and its slashing of manager roles isn't just about cost-cutting, but a glimpse into the future of work. https://lnkd.in/emqZkr8T

Amazon could save up to $3 billion annually by cutting nearly 14,000 managers, according to Morgan Stanley's projections. 🏢 Amazon's restructuring: CEO Andy Jassy aims to streamline operations by reducing layers of management, pushing for a 15% increase in the ratio of individual contributors to managers. 💼 Major job cuts: Morgan Stanley estimates nearly 13,834 managerial positions could be eliminated by early 2025, saving the company between $2.1 billion to $3.6 billion. 💰 Efficiency focus: Cutting these roles could save up to 5% of Amazon’s operating profit for 2025, with the average cost per manager ranging from $200,000 to $350,000. ⚙️ Cultural shift: Amazon has acknowledged its expansion of management roles and sees this moment as key for reshaping its corporate structure to move faster and more efficiently. 🚀 Looking ahead: While layoffs are anticipated, Amazon could also repurpose managers into new roles to balance efficiency with retaining talent. #Amazon #Leadership #CorporateStrategy 📉 Impact: With over 1.5 million employees, including logistics workers, the changes will significantly impact Amazon's corporate workforce. 📊 Strategic savings: By trimming management layers, Amazon could enhance its agility while boosting its bottom line, crucial for long-term growth. ♻️ Repost if you enjoyed this post and follow me, César Beltrán Miralles, for more curated content about leadership! https://lnkd.in/gHDawWXZ

The concept of sustained upheaval is incredibly fascinating! Do you know people or organizations who are in a constant state of change? At Amazon, it is well expected to have a new manager every 3-6 months. Turnover and change is anticipated and expected, baked into the culture. Here is an excellent piece in Inc, highlighting how to lead through constant crisis. https://buff.ly/48OQTKM

Amazon is reducing the headcount (which is not a big deal, basically), however this time the focus is on the managers. They plan to flatten the organization by cutting its managerial staff (we are talking about 14 000 managers to be released). The goal is to increase the proportion of individual contributors to managers by at least 15%. The same was previously done by Meta. Seems like a trend - fire the manager is a new black. [individual contributor - an employee responsible for performing specific tasks or functions within an organization without the authority to manage other employees] [yes, I googled it for you, you are welcome] #Amazon #Management #OrganizationalRestructuring

Amazon to cut 14k managers and change the ratio of individual contributors to managers by more than 15% by Q1 2025. This is the vision we at Taskbeasts are working towards. With the Beast Method we enable IC-to-manager ratios of 20:1 and even 40:1. While having output improve. How? Systems, Systems, Systems. https://lnkd.in/gSNt46c3

Amazon, in a bold move, plans to reduce 14,000 managerial positions by early 2025, as cited in a Morgan Stanley report. This restructuring is not just about saving up to $3 billion annually but also about transforming the company’s internal culture. By increasing the ratio of individual contributors to managers by at least 15%, Amazon aims to cut through bureaucracy, empower employees, and foster a startup-like environment. This initiative teaches us the importance of agility and accountability in a rapidly changing world. Streamlining decision-making processes and flattening organizational hierarchies can lead to swift decisions and enhanced collaboration, which are pivotal in maintaining competitiveness. For Amazon, this transformation is more than job cuts; it is about enhancing operational efficiency and developing a culture of urgency and resourcefulness. These changes reflect a mission to not just save costs, but to become more agile in serving their customers. The key takeaway here is that organizations, especially large ones, must constantly reassess their internal dynamics and be willing to make difficult decisions. In creating a more dynamic work environment, Amazon is positioning itself as not merely a giant but as the world’s largest startup #Amazon #Restructuring #ManagerialPositions #OperationalEfficiency #CompanyCulture #Agility #Accountability #EmployeeEmpowerment #StartupCulture #BusinessTransformation #Leadership #OrganizationalChange #Collaboration #CostCutting #FutureOf

In a memo released today, Amazon CEO reveals that he's learned nothing from the last five years - which is quite sad. As they taught in high school, one has to learn from experience to avoid making the same mistakes. As a society, we either evolve or die. Amazon's leadership has shown it is not capable of seeing "the office" as evolving. It will take someone younger and more agile to spur that evolution, at that firm or perhaps its new and upcoming competition, but one way or another the future is forward not backward. Mr Jassy cited “culture” as the key reason for this. Demanding everyone behave how the CEO sees fit – despite the data showing productivity increases and happier employees – is about as culture-busting a move as a company can make.