Amazon CEO Andy Jassy explains why he wants fewer managers: ‘… because it’s not a political..’

Amazon CEO Andy Jassy recently shared the reasons behind the company’s decision to reduce its number of managers. At an internal all-hands meeting, Jassy said that the aim is to streamline decision making and reduce management layers that are killing Amazon’s unique culture, as reported by Business Insider.

‘I hate bureaucracy’: Amazon CEO

“The reality is that the S team and I hate bureaucracy,” Jassy said, referring to the senior leadership. “One of the reasons I’m still at this company is because it’s not a political or bureaucratic place.”
“We have a chance to build the most remarkable company in the history of business. But I also would say that I’m not sure that there’s been a more important time in the history of this company with the way technology is changing, especially with AI, for us to be well set up to innovate together and to collaborate together and to be connected to one another and to understand the culture, and that’s what we’re optimizing for.”
“The goal again is to allow us to have higher ownership and to move more quickly,” Jassy said.
He also explained that these changes are essential for Amazon in light of the fast-evolving technology landscape and increasing competitive pressure. In the tech industry, only a handful of companies last 50 or 100 years because “the world changes, technology changes, competitors change, companies change,” he noted.

Amazon introduces ‘Bureacracy Mailbox’

In September, Amazon revealed its plans to raise the ratio of individual contributors to managers by 15% by the end of the first quarter of 2025. An internal document indicated that this shift may lead to role eliminations as the company identifies overlapping positions. The e-commerce giant also announced a new “Bureacracy Mailbox” last month allowing employees to voice concerns about unnecessary or excessive processes and suggest areas for improvement.
Jassy told employees that he has received over 500 email through the bureaucracy inbox and the company has taken action on more than 150 of these suggestions.