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New Delhi: Amazon, the world’s largest e-commerce company, has once again announced a big blow to its corporate employees. According to the latest reports, the company is planning to eliminate around 14,000 corporate positions by the first half of 2026. This decision has created a stir in the global tech world, but the most shocking reason has been given by the company’s CEO himself.
CEO’s big statement: ‘The goal is to eliminate bureaucracy’
Amazon CEO Andy Jassy has given a surprising reason behind this big layoff. He said that the “bureaucracy” (red tape) within the company has increased a lot, due to which the decision making process has become slow and the company is losing its old agility. The main objective of this restructuring is to correct the ‘Manager-to-Individual Contributor’ ratio. In simple words, the company now wants to increase the number of employees working at the ground level by reducing the number of managers, so that the startup-like momentum can be brought back.
Billions of dollars will be saved
Market experts believe that this strategic change will bring huge financial benefits to Amazon. According to an estimate, this reduction of 14,000 positions could save the company a huge amount of $2.1 billion to $3.6 billion (approximately ₹29,000 crore) annually. The company can use this remaining amount to improve its operational efficiency and invest in new technologies.
Work from home also banned, coming to office for 5 days mandatory
Along with job cuts, Amazon has also made drastic changes to its work culture. CEO Andy Jessie has made it clear that it will now be mandatory for employees to come to office 5 days a week. The company believes that to maintain its ‘Day 1’ work culture, it is very important for the entire team to be present in the office together.
The retrenchment process will be completed by March 2026
To implement this major organizational change, Amazon March 2026 Time limit has been set. This means that in the next few months, the roles of managers posted in various departments will be reviewed and this process of retrenchment will be completed in a phased manner. This step of Amazon in the tech sector is also being considered as a signal for other big companies that now the focus of the companies has shifted from expansion to ‘making profits’ and ‘increasing efficiency’.
North India Statesman