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Amazon Targets Bureaucracy: Streamlining Operations and Reducing Middle Management in 2025
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Amazon is aggressively tackling internal bureaucracy to boost efficiency and reduce layers of middle management, a move highlighted by recent executive statements and organizational changes. The initiative aims to streamline decision-making and empower teams across the company.
Amazon’s Anti-Bureaucracy Push Gains Momentum
Fueled by concerns over slow decision-making processes, Amazon is actively working to dismantle its internal bureaucracy. Jason Buechel, Amazon’s Vice President of Worldwide Grocery and whole Foods CEO, recently described the company’s bureaucracy as “ridiculous,” emphasizing the need to accelerate processes like spending approvals [[3]].
Buechel stated that the excessive bureaucracy slows down Amazon’s grocery business and hinders progress. This sentiment echoes throughout the company, with efforts underway to identify and eliminate unnecessary processes.
Did You Know? Amazon employs 1.56 million people worldwide, making efficient operations crucial for its success.
CEO Andy Jassy‘s Stance on Bureaucracy
Amazon’s emphasis on reducing bureaucracy extends to the highest levels of leadership. CEO Andy Jassy has made it clear that he dislikes bureaucracy and is committed to fostering a more agile and efficient work environment [[1]].
In September 2024, Jassy introduced a “bureaucracy mailbox” where employees could submit examples of unnecessary processes. By November 2024, over 500 emails were received, with Amazon acting on more than 150 suggestions.This initiative demonstrates a commitment to actively seeking and addressing bureaucratic inefficiencies.
Restructuring Middle Management
A key component of Amazon’s anti-bureaucracy strategy involves reducing the layers of middle management. In September 2024, Jassy announced plans to eliminate excess layers of middle management by the end of march 2025.Amazon achieved this by pausing the hiring of new managers, demoting some existing managers, and increasing the number of direct reports for remaining managers [[3]].
This restructuring aims to flatten the organizational hierarchy, empower employees, and improve communication flow. The goal is to create a more nimble and responsive organization capable of adapting quickly to changing market conditions.
Pro Tip: Streamlining management structures can lead to faster decision-making and increased employee autonomy.
Recent Layoffs and Cost-Cutting Measures
Alongside efforts to reduce bureaucracy, Amazon has also implemented cost-cutting measures, including layoffs.As 2022, the company has laid off more than 27,000 employees across various departments [[2]]
