Recently, Amazon CEO Andy Jassy said that the company will reduce its manager workforce by about 14,000 to boost individual contributor density by at least 15% by the end of Q1 2025. By all accounts of Morgan Stanley it is estimated that this decision will enable Amazon Layoffs to shave up to $3 billion per annum off its operations.
One of their approaches will be to increase the operational performance through structural changes in management which is a part of Jassy’s plans. There could be some level of discomfort among employees however, the company was quick to state that the number of managers that the CEO seeks to transform is far much lesser than what was thought earlier.
Also, The Information reported that Beschloss mentioned that the layoffs were going to occur only for the corporate workers. More than 1,500,000 employees work worldwide, and 348,875 people are employed in corporate positions, such as engineers, marketers, and product managers.
However, Amazon Layoffshas admitted that this organization has ‘hired a lot of managers’ lately, and thus feels that the time is ripe to make this change.
Every team has been ordered to look at restructuring and, it is ‘likely’ that some positions may be done away with. This is mainly done in an effort to offer an organizational structure free from several layers of management which slow down the decision making process and to demystify decision making processes and get rid of bureaucracy.
Jassy discusses the values that focus on urgency, ownership, speed, resourcefulness, restraint, and teamwork, and the company’s target to make Amazon Layoffs the world’s largest startup.
How Managers and Employees Can Succeed in Creating a Culture Required for Amazon CEO’s ‘World’s Largest Startup’ Mentality
For managers:
To align with Andy Jassy’s vision of Amazon as the “world’s largest startup,” managers should develop the following skills:
- Agility in decision-making: Managers have to make decisions in a short timeframe using current data to respond to the changing market. For instance, they may shift a project strategy according to customers’ feedback to make sure the whole team is focused on customers’ needs.
- Empowerment of team members: It creates a culture of achievement since there will be hardly any time when the team members can blame the other for a given performance since they own them. For example, it can involve a manager in assigning the leadership of a particular product development theme so that the personnel can decide on certain issues themselves.
- Effective collaboration: Co-ordinate and collaborate with other teams improve on problem solving. In another scenario, the manager may convene weekly cross functional group meetings to discuss how the problem could be solved because personnel within the organization possess expertise in different skill areas.
- Frugality and Resource Management: Managers ought to use as many resources as possible and avoid wastage. For instance, instead of procuring new tools that would complete the specific goal, they could execute projects using already available tools.
- Culture of urgency: That way, creating a sense of urgency would help achieve faster actions. They must also observe time and ensure that the work being done has shorter time frames set by the managers and daily meetings with stand-up deadlines.
For employees:
To align with Andy Jassy’s vision of Amazon operating like the “world’s largest startup,” employees should also develop the following skills:
- Adaptability: Employees should be willing to learn, be willing to change when need be due to new information or a change in course.
- Ownership and accountability: Ownership makes people more responsible towards a certain task as well as makes them more likely to seek solutions by themselves.
- Effective communication: This paper asserts that achievements of organizational goals can only be enhanced through better communication. It is advisable that the employees be able to express them self and their ideas and feedback in the best way.
- Innovative thinking: Creativity and getting out of a confined square thinking can bring about good results, and add value in improvement. An employee that may come up with a new strategy to adopt in a certain task may help increase efficiency and boost the agility of the company.
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