Marilyn Popovich’s Post

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

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

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

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's CEO Andy Jassy plans to increase the ratio of individual contributors to managers by at least 15% by the end of 1Q25", aiming for a flatter organizational structure. Experts predict that AI-powered tools will continue to automate tasks, making middle management roles redundant and forcing companies to rethink their organizational structures. 🤔 Is it possible that this situation eventually will happen? The ideal ratio of individual contributors to managers is around 7-10, depending on the nature of the work, and companies like Amazon are exploring this balance to improve efficiency and decision-making. https://lnkd.in/gTKB4ZfR

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's Andy Jassy wants to turn back time. Back to before Covid when everyone was expected to be physically in the office 5 days a week (even Friday!). It would be interesting to see how this rolls out in 2025 and beyond. How many other companies will follow Amazon? The investors in commercial office real estate and the banks who finance them are holding their breadth. "To address the second issue of being better set up to invent, collaborate, and be connected enough to each other and our culture to deliver the absolute best for customers and the business, we’ve decided that we’re going to return to being in the office the way we were before the onset of COVID. When we look back over the last five years, we continue to believe that the advantages of being together in the office are significant" https://lnkd.in/epGcf4kM

Smaller companies look to companies like Amazon for direction. What Amazon is planning next is concerning... Amazon led the charge for the RTO 5 days a week crusade. Others followed: JPMorgan, Goldman Sachs, Dell, and the Washington Post. Next up, Amazon wants to flatten its organization. Morgan Stanley estimates Amazon could eliminate up to 14K middle manager positions. Wall Street is gleeful over the plan.  Their stock price will be rewarded. Other companies will like the looks of this. 🙏 Please do not be a sitting duck. Start thinking about your plan B. Just in case. And please do not think you are somehow immune. Changes like these (i.e. fundamental work structure reforms) will cascade through the marketplace. Have your resume and LinkedIn profile updated and looking good (please quantify your accomplishments). Get out there and proactively talk with your network. Get reacquainted. Showcase your value. Lead with a mindset of reciprocity. Do for them today so they can do for you tomorrow. Do it now. Please. “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.” - Source: CNBC “Amazon and the Endangered Future of the Middle Manager” Published Sun, Dec 15 20249:06 AM EST

I have some thoughts to share on this. First, wrapping up mandatory return to office with workforce reduction shows that #Amazon expects that Managers who do not agree with the new mandate will naturally walk away, reducing the need for culling through layoffs or Focus/PIP to fulfill the new reduction targets. Second, the Bureaucracy Mailbox, in the context it has been announced, just sounds to me like an invitation for people to turn on each other, illustrative of the current company culture. Last but not least: a shout-out to all Managers at Amazon: if you happen to be placed on Focus all of a sudden, remember: it is not your fault. You showed up, you delivered, you lived your life by the company’s credo. Seek for the help and support of those who love you the most and carry on. Those are difficult times and my thoughts and prayers go to all those who will be impacted by these new policies.