Amazon to Layoff 14,000 Managers

If you thought Amazon’s RTO mandate was bad—this is even worse.

Amazon plans to cut up to 14,000 managerial roles by early 2025, targeting $3 billion in annual savings. Yeah, you read that right.

This move, part of CEO Andy Jassy’s broader cost-cutting strategy, is about way more than just trimming a few billion. Jassy wants to boost the ratio of individual contributors to managers by 15%—a fancy way of saying he wants fewer managers overseeing larger teams and more employees carrying the weight themselves.

This isn’t happening in a vacuum. Last month, CVS Health laid off nearly 3,000 management positions in one sweep, signaling a broader trend in corporate America. These companies aren’t just tightening belts; they’re sending a clear message: the era of bloated middle management is over. We should work together to get you prepared for the future of work. Don’t wait until it is even more competitive.

So, what’s the play here? Streamlined decision-making, sure. But what we’re really witnessing is a corporate shift towards leaner teams, faster execution, and—surprise, surprise—more pressure on the remaining workforce.

Companies are done paying top dollar for multiple layers of management when they can just eliminate them and let AI and automation pick up the slack.

For those who thought their middle-management role was safe, consider this your wake-up call. Amazon isn’t just restructuring; it’s reimagining what the company of the future looks like. And, spoiler alert—it’s got fewer managers and more doers.

Middle Management in the Crosshairs

The cuts at Amazon are expected to reduce its global management headcount from 105,770 to around 91,936. And they’re not alone.

CVS Health’s recent move was no coincidence. More and more companies are shedding corporate management roles, opting to flatten their structures and reduce operational costs. Why? Because when every dollar matters, companies aren’t going to waste money on roles they consider expendable.

Here’s the reality: middle management is expensive.

According to a Morgan Stanley analysis, the average cost per manager at Amazon ranges from $200,000 to $350,000 a year. Do the math, and those 14,000 positions translate into a potential savings of $3 billion annually.

2024: 1,532,000 Amazon Employees

2023: 1,525,000 Amazon Employees

2022: 1,541,000 Amazon Employees

2021: 1,608,000 Amazon Employees

2020: 1,298,000 Amazon employees

2019: 2,832,900 Amazon employees

2018: 647,500 Amazon employees

But the cuts also mean one thing… middle managers are becoming corporate liabilities.

And in a world moving at breakneck speed, companies are betting on fewer layers to get things done faster and cheaper.

The Real Reason Behind the Cuts?

Let’s not sugarcoat this—automation and AI are fundamentally reshaping what companies need from their workforce.

With AI-driven insights informing decisions in seconds and automation handling repetitive tasks, the demand for multiple layers of human oversight is shrinking rapidly. What does that mean? A new era where middle managers are seen as an obstacle rather than a value add.

And if you think Amazon and CVS are the only ones taking this approach, think again. We’re witnessing the beginning of a trend that’s likely to ripple through every major industry.

Removing those layers of management isn’t just about agility—it’s about survival in an increasingly competitive landscape where leaner, more agile companies are the ones staying ahead.

What’s Next for Middle Management?

If you’re in a managerial role and not actively demonstrating why your position is essential, you’re on borrowed time. It’s not enough to sit at the table; you’ve got to earn your seat every single day.

Amazon’s decision to implement a “bureaucracy tipline” shows just how deep this push for efficiency is going. They’re not waiting for consultants to tell them how to optimize - they’re crowd-sourcing it from their own workforce.

The bottom line: the writing’s on the wall for cushy middle management gigs. Fewer people, smaller teams, and a hell of a lot more pressure to perform - that’s the new reality. Amazon and CVS are just the first dominoes.

If you’re not paying attention, you’re missing the bigger picture of what’s happening in corporate America.

It’s not just a restructure—it’s a full-scale reinvention of what a modern company should look like.

And middle managers? You might want to start updating your resume.

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