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it house news on october 6, according to a morgan stanley report, amazon plans to cut 14,000 management positions by the beginning of next year, thereby saving about 3 billion us dollars annually (it house note: currently about 21.17 billion yuan).

according to the report, the move is part of amazon ceo andy jassy's strategy to improve operational efficiency by increasing the ratio of individual contributors to managers by at least 15% by march 2025.

jassy stressed the importance of cultivating a culture characterized by a sense of urgency, responsibility, quick decision-making, resourcefulness, frugality and collaboration, with the goal of positioning amazon as the world's largest startup.

the report also noted that jassy launched a "bureaucratic whistleblower hotline" to allow employees to report unnecessary procedures that hindered their work.

morgan stanley estimates that the layoffs could reduce amazon's global manager count from about 105,770 to about 91,936, with the estimated annual cost per manager ranging from $200,000 to $350,000 (currently about $1.411 million) to rmb 2.47 million), this can save us$2.1 billion to us$3.6 billion per year (currently approximately rmb 14.819 billion to rmb 25.404 billion), accounting for approximately 3% to 5% of amazon's expected operating profit in 2025.

the report said that amazon acknowledged that it had recently expanded its management team and that the company had not yet specified any clear plans for layoffs. the restructuring is designed to streamline operations and minimize bureaucratic hurdles, with the potential to achieve the anticipated rate changes through reallocations rather than outright layoffs.

meanwhile, amazon announced plans to require employees to return to the office full-time (five days a week) starting in january next year.