Amazon CEO Andy Jassy is taking significant steps to streamline the company's structure by reducing the number of middle managers. Jassy's initial target was a 15% reduction by the end of Q1 2025; however, the company has already surpassed this goal.
This move is intended to increase efficiency, giving employees more autonomy and allowing them to take greater ownership of their work. "You add a lot of people and you end up with a lot of middle managers. And those middle managers, all well-intended, want to put their fingerprint on everything," Jassy said in an interview to Bloomberg.
This means the future of Amazon will have fewer bosses, and employees will be expected to manage themselves. The reduction in middle management aligns Amazon with broader industry trends, where tech giants like Meta and Google are undertaking similar initiatives. The aim is to minimise inefficiencies caused by excessive managerial layers that often involve unnecessary pre-meetings. "So you end up with these people being in the pre-meeting, for the pre-meeting, for the pre-meeting, for the decision meeting, and not always making recommendations and owning things the way we want that type of ownership," Jassy explained.
Amazon's approach has been particularly well-received by Gen Z employees, who value flexibility and autonomy in the workplace. A survey by recruitment firm Robert Walters revealed that 52% of Gen Z workers would prefer not to become middle managers, while 72% favoured career progression without supervisory roles. They appreciate the empowerment that comes with having "more ownership and they’re going to be able to move more quickly," reflecting a shift towards personal growth and self-management.
Despite the structural changes, Amazon maintains a strict return-to-office (RTO) policy, which requires employees to work in person five days a week. AWS CEO Matt Garman supports the policy, arguing that true innovation is challenging to achieve remotely. This stance has faced resistance, with some employees opting to "rage apply" for new jobs or expressing dissatisfaction through letters to leadership.
The reduction in middle management forms part of a broader movement dubbed 'conscious unbossing,' which focuses on personal growth and reducing managerial oversight. This approach is gaining traction across industries as companies seek to empower individual contributors. Amazon's leadership remains firm in its decision, despite some employee dissatisfaction with the RTO policy.