Amazon is undergoing significant layoffs in its communications and sustainability departments and has recently let go of 200 employees from its North America stores team. CEO Andy Jassy announced plans to streamline management by cutting excess layers, based on internal guidelines for AWS sales managers that mandate increasing direct reports and reducing managerial roles. These changes aim to tighten costs and enhance operational efficiency as the company shifts its management structure from diamond to pyramid shaped. The restructuring reflects Amazon's strategy to decrease managerial overhead and increase individual contributor roles.
"The document tells AWS sales managers to increase their number of direct reports, pause hiring new managers, and demote some managers down a level to a non-managerial position of less pay."
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