'No bureaucracy' | Amazon CEO Andy Jassy continues reshape of management structure

Amazon CEO Andy Jassy continues reshape of management structure

Amazon CEO Andy Jassy has added further detail to his plans to reshape the way the online shopping giant operates, aiming to create a more nimble organisation with fewer management layers and a new leadership model.

Speaking at an internal town hall meeting, Jassy outlined how the company is restructuring and emphasized that promotions will no longer be linked to team size.

Prioritizing efficiency over hierarchy

As part of a broader shift, Amazon has committed to increasing the ratio of individual contributors to managers by 15%, a goal that has now been achieved. Jassy said that the most effective leaders are those who "get the most done with the least amount of resources," adding that large teams will not be the key to career advancement.

“Every new project shouldn't take 50 or more people to do it,” Jassy said, highlighting how some of Amazon Web Services’ most successful products started with small teams. He stressed that managers should focus on impact rather than building "fiefdoms" within the company.

Amazon has already made structural changes, including merging teams and shifting some managers into individual contributor roles. A spokesperson confirmed that the adjustments did not result in a 15% reduction in management roles but rather a restructuring aimed at increasing agility.

Driving a culture of meritocracy

Jassy also reaffirmed Amazon’s commitment to reducing red tape. Last year, the company introduced a “No Bureaucracy” initiative, allowing employees to flag unnecessary processes. So far, over 1,000 reports have been received, leading to 375 policy changes.

"Companies tend to slow down as they grow, focusing more on adding layers of management rather than improving customer experience," Jassy said. He urged employees to maintain a sense of ownership and operate with the mindset of a startup, stating, “This is all of our company.”

In a competitive market, Jassy stressed the importance of moving quickly and staying aware of external innovations. He pointed to rival firms and startups operating at an intense pace, working "seven days a week, 15 hours a day," as an example of the drive Amazon needs to maintain.

Under Jassy’s proposals, Amazon is reinforcing its focus on performance, customer impact, and operational efficiency, aiming to sustain its competitive edge in a rapidly evolving industry. For management and other employees it means adjustments, new processes and departmental flux as the organisation adapts to its new, more streamlined approach to the day to day.

Be the first to comment.

Sign up for a FREE myGrapevine account to have your say.