Amazon's Bureaucracy Reduction Strategy: How Andy Jassy's Restructuring Reshapes Corporate Operations

Amazon announced a fresh workforce restructuring affecting approximately 16,000 employees globally, marking the second major organizational overhaul within recent months. This move represents a continuation of the tech giant’s broader strategy to dismantle organizational layers and accelerate decision-making across the company. Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, confirmed the restructuring and emphasized that the company would provide transition support including severance packages, outplacement services, and extended health insurance coverage for affected employees.

The Broader Context of Amazon’s Bureaucracy Reduction Initiative

This restructuring follows Amazon’s October 2024 organizational changes, which eliminated approximately 14,000 corporate roles. The cumulative impact brings the total workforce reduction to roughly 30,000 positions from Amazon’s total corporate workforce, representing a significant structural transformation. Rather than viewing these moves as separate events, Amazon frames them as part of an ongoing evaluation process to ensure the organization maintains the speed and ownership necessary to serve customers effectively.

The Amazon bureaucracy reduction extends across multiple business units including Amazon Web Services (AWS), retail operations, Prime Video, and human resources divisions. Galetti noted that while many teams completed their organizational restructuring in October, other divisions required additional time to finalize their changes, leading to the staggered implementation of these cuts.

Andy Jassy’s Leadership Philosophy on Organizational Efficiency

Andy Jassy, Amazon’s CEO, has been instrumental in articulating the reasoning behind these broad organizational changes. Initially, Amazon attributed the October layoffs to the rise of artificial intelligence and its potential to enhance operational efficiency. However, Jassy later clarified that the restructuring was fundamentally about reducing bureaucracy and strengthening company culture rather than purely financial optimization or AI displacement concerns.

In early 2025, Jassy suggested that Amazon’s corporate workforce would likely continue to evolve as automation technology handles routine administrative tasks. This reflects a broader industry trend where companies leverage AI to streamline software development and eliminate repetitive work, thereby optimizing operational costs through technological advancement rather than head-count reduction alone.

Transition Support and Strategic Hiring Plans

Amazon is offering most US-based employees affected by the restructuring 90 days to explore internal role opportunities. International timelines will vary based on local regulatory requirements and employment law specifics in each jurisdiction. The company emphasized that even amid these significant reductions, it would continue investing in strategic functions and capabilities deemed critical for future growth and innovation.

Market Response and Strategic Implications

The stock market responded positively to the announcement, with Amazon shares gaining momentum in pre-market trading. The company’s approach suggests a calculated effort to balance organizational efficiency with ongoing investment in high-priority initiatives, reflecting a maturing perspective on how technology companies can simultaneously streamline operations and prepare for future opportunities in an increasingly competitive landscape.