News: 0175205703

  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

Amazon To Cut 14,000 Corporate Jobs in Early 2025, Morgan Stanley Says

(Monday October 07, 2024 @11:20AM (msmash) from the how-about-that dept.)


Amazon will likely eliminate around 14,000 corporate jobs by early next year as part of ongoing efforts to reduce costs, according to a note Morgan Stanley sent to clients that Slashdot has reviewed. Brian Nowak of Morgan Stanley estimated Amazon [1]could cut approximately 13,800 manager positions by the end of the first quarter of 2025, based on the company's stated goal of increasing the ratio of individual contributors to managers by at least 15%.

"AMZN management's recent letter laying out an increased focus on efficiency should lead to further EBIT cushion and (potential) upside in '25," Nowak wrote. The potential headcount reduction could result in $2.1 billion to $3.6 billion in annual cost savings for Amazon, adding 3% to 5% to the company's 2025 operating profit, according to Nowak's analysis. Amazon has already cut over 27,000 jobs since late 2022 as part of a major cost-cutting push. The company employed 1.54 million people globally as of the end of June.



[1] https://x.com/refsrc/status/1843206993814663330



Cheers ? (Score:1)

by GruntboyX ( 753706 )

This should generate hoorays right?

.91%? (Score:2)

by schwit1 ( 797399 )

That's not huge. Every for-profit business ought to be looking to cull low performers and no-longer necessary jobs.

It's about the bottom line.

Re: .91%? (Score:2)

by phantomfive ( 622387 )

Cut the number of managers, watch productivity increase.

Re: (Score:2)

by FictionPimp ( 712802 )

I see a movement toward working managers. The idea of 100% people pushers is dying. If you are in an engineering org, you are engineering regardless of role.

Re: (Score:2)

by quintessencesluglord ( 652360 )

Kinda.

Place I work for went through one of these efficiency purges, only to miscalculate how many bodies they would need, and now have to offer substantial hiring bonuses just to convince people to apply, let alone retention bonuses the convince people to stay in such a death spiral. And even that has failed miserably, with the culture it took decades to foment destroyed in a few years. I'm already planning my escape.

This efficiency uber-alles thinking is the same that lead to supply issues during Covid, an

Work from home folk... (Score:2)

by zkiwi34 ( 974563 )

The bell is likely to toll for thee.

Re: Work from home folk... (Score:2)

by phantomfive ( 622387 )

Amazon doesn't do work from home anymore.

Re: Work from home folk... (Score:2)

by klipclop ( 6724090 )

Seems like managers will need to push for a 7day return to office next. I wonder if this will help my amazon stocks more up and to the right. Lol

Re: (Score:2)

by 93 Escort Wagon ( 326346 )

Well, as people here speculated - odds are the most recent "five days in the office per week" mandate was primarily intended as a stealth layoff tool.

Society (Score:2)

by gillbates ( 106458 )

What sort of society would we have if those companies which routinely lay off staff were seen as poorly managed? What if layoffs were seen as an indicator that management possessed poor planning skills?

Why can't government do this? (Score:2)

by davide marney ( 231845 )

Having worked in the private sector for many decades, I have been through at least a dozen layoffs, restructurings, change in ownership, mergers, you name it. Staff cuts of 15% were routine. Yes, these were painful, but in most cases the workplace improved. Layoffs are a great way to cull the deadwood. Layoffs of managerial staff, especially.

What I have never understood is why we don't insist that public sector workers work with the same expectations of job performance and utility. It must be horrible to wo

Your only obligation in any lifetime is to be true to yourself. Being
true to anyone else or anything else is not only impossible, but the
mark of a fake messiah. The simplest questions are the most profound.
Where were you born? Where is your home? Where are you going? What
are you doing? Think about these once in awhile and watch your answers
change.
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