Amazon's CEO, Andy Jassy, aims to restructure the company to mirror the agility of a startup, eradicating excessive layers of middle management to spur quicker innovation.
Amazon, the second-largest employer in the world with 1.5 million employees, is undergoing a significant cultural transformation under the leadership of its new CEO, Andy Jassy. Jassy took over from Jeff Bezos in 2021 and has been working diligently to eliminate bureaucracy and flatten the organization.
Jassy believes that bureaucracy is not conducive to startups and entrepreneurial organisations, and he aims to help Amazon grow by streamlining its operations. He reiterated this need during Amazon's annual conference for third-party sellers in November, stating that he wants Amazon to innovate more quickly by eliminating bureaucracy.
To achieve this, Amazon has implemented a "Bureaucracy Mailbox," allowing employees to email examples of unwanted rules. Since its inception, the mailbox has received 1,500 emails, resulting in changes to 455 processes.
In addition, Amazon has mandated that employees return to the office five days a week, with the return-to-office policy taking effect on Jan. 2. However, Jassy also recognises the need to reduce the number of managers to eliminate excess layers of middle management. In September 2024, each team within the company was asked to reduce the number of managers by at least 15%.
Amazon has accomplished this reduction in managers without layoffs. Instead, managers have been asked to increase their number of direct reports, pause hiring new managers, and demote some employees down a level to non-managerial positions.
Jassy wants Amazon to operate like the world's largest startup, solving real customer problems, working quickly, reducing bureaucracy, and being willing to take risks. He believes that as Amazon gets larger, it's easy to accumulate bureaucracy, and he is determined to reset Amazon's culture.
However, for further reading on this topic, you will need a subscription as the article is locked. It's clear that Amazon's transformation under Jassy's leadership is a significant move, and only time will tell how it will impact the company's future.
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