Amazon CEO Andy Jassy is on a mission to streamline the company by reducing its layers of middle management. During a recent all-hands meeting, he emphasized that success at Amazon isn't about building large teams, but rather about maximizing productivity with fewer resources. Following this directive, Jassy is aiming for a 15% increase in the ratio of individual contributors to managers by the end of Q1 2025, which could potentially lead to thousands of managerial layoffs. This approach aligns with the success observed in Amazon Web Services, where smaller teams drove major advancements and revenue growth.
The way to get ahead at Amazon is not to go accumulate a giant team and fiefdom. There's no award for having a big team.
The best leaders are the most effective, getting the job done with the least amount of resources and the fewest number of people on their teams.
Some of the most successful products in Amazon's cloud business, AWS, started with a team of about a dozen people, not a team of at least 50.
Jassy asked every senior leadership team to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025.
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