Amazon is initiating a significant restructuring by increasing the number of direct reports per manager in its AWS sales team from 6 to 8. This move aims to cut back on middle management to reduce bureaucracy and improve decision-making efficiency, aligning with a broader trend in corporate America. CEO Andy Jassy's plan includes a 15% increase in individual contributors relative to managers by March. Although specific guidelines have been shared internally, the company maintains these changes may not apply universally across all units.
The company's reorganization reflects a broader trend in corporate America to trim middle managers, aiming for a more efficient organizational structure.
Amazon's guidelines now dictate a minimum of 8 direct reports per manager, up from 6, signaling a commitment to flattening its hierarchy.
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