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Amazon wants fewer managers. a leaked document explains how.

An internal Amazon document explains how the company plans to achieve its new goal of having fewer managers.

Amazon CEO Andy Jassy on Monday announced a plan to increase the ratio of individual contributors to managers by at least 15% by the end of the first quarter of next year.

BI has obtained a copy of the internal document, which warns that the new plan could lead to role cuts as “organisations may identify roles that are no longer needed”. The goal is to increase the ratio from end-2023 levels.

Here are all the details from the document. Amazon did not respond to a request for comment.

Frequently asked questions about strengthening our organizations

Q1. Why do we take steps to flatten our organizations?

We are always looking to hire highly intelligent and resourceful teammates who work to detail and have a high sense of ownership. This activity builds on some of the previous ways we’ve worked to keep our teams healthy, such as span of control, and aims to help teams move faster without unnecessary processes, meetings, mechanisms and layers that it creates overhead and wastes valuable time. . If we get this right, it will drive decision-making closer to the front line where it has the most impact on customers (and the business), reduce red tape and strengthen our organizations’ ability to make customers’ lives better and easier in every day.

Q2. Why are we taking these steps now?

As we’ve grown our teams quickly and substantially, we’ve understandably added a lot of managers.

In the process, I added even more layers than I had before. There are artifacts created that we would like to change (eg pre-meetings for pre-meetings for decision meetings, a longer line of managers who feel they need to review a topic before it moves forward, initiative owners feel less should they make recommendations because the decision will be made elsewhere, etc.).

We want more of our teammates to feel like they can move quickly without unnecessary processes, meetings, mechanisms, and layers that create overhead and waste valuable time. We believe now is the right time to bring us all closer to our customers and strengthen our culture of ownership.

Q3. What is the timeline for when organizations will make this change?

In the coming months, Amazon’s senior leaders will examine their organizations for opportunities to foster an even more customer-centric team structure that encourages agility and empowers front-line decision-making. This is long-term iterative work, but we believe most organizations will make these changes by the end of Q1 2025. Some organizations have already taken steps to flatten the way they are structured, and we are asking every team leader to increase their contributor ratio individual versus managers by at least 15%, starting from their baseline at the end of 2023. Any changes or adjustments will be communicated at team level.

Q4. Will reducing layers limit my visibility with my manager?

We expect it to be the opposite—any changes that result from this should increase managers’ and leaders’ visibility into the work of their teams. If we do this work well, it will increase our colleagues’ agility and ability to move quickly, clarify and invigorate their sense of ownership, and drive decision-making closer to the front line, where it impacts customers (and the business).

Q5. Will increasing the ratio of individual contribution to manager lead to role eliminations?

Every organization will review their structure to ensure their teams are best configured to achieve their goals.

Organizations may identify roles that are no longer needed. Any changes or adjustments will be communicated at team level.

Q6. Who is responsible for making decisions about changes to organizational structures?

Amazon’s senior leaders will work closely with their HR business partners to determine what changes will help them have a more customer-centric organizational structure that encourages agility and empowers front-line decision-making. Any changes resulting from this process will be communicated in advance at the team level.

Are you a tech industry employee or someone else with insights to share?

Contact reporter Ashley Stewart via the encrypted messaging app Signal (+1-425-344-8242) or by email ([email protected]). You are using a device that does not work.

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