Amazon CEO Andy Jassy has expressed his desire to reduce management layers and bureaucracy in a leaked recording. During an internal meeting, Jassy reiterated his commitment to de-layering, aiming to cut down on bureaucracy. Amazon previously announced plans to increase the ratio of individual contributors to managers by 15% by the end of March.
Jassy stated that building a large team or fiefdom would not aid in promotions and encouraged employees to act like owners while staying aware of industry competition. He emphasized that the best leaders are those who accomplish the most with the least amount of resources. Jassy also noted that not every new project should require 50 or more people, citing AWS’s successful products that started with teams of about a dozen.
In response to a question about running Amazon like the world’s largest startup, Jassy underscored the need for a culture of speed and meritocracy. Amazon has not detailed exactly how it is reducing management layers, but some managers were instructed to increase their direct reports, limit senior hires, and adjust pay for certain employees.
Additionally, Amazon created a “No Bureaucracy” email alias in September for employees to report unnecessary processes. Jassy mentioned he has read over a thousand emails received through this alias and that the company has made over 375 changes as a result.
Jassy urged employees to move fast and act like owners, warning against the risk of becoming slow and indecisive as a large company. He reminded employees that it is their company and encouraged them to be hyper-aware of what is happening around Amazon and in the broader technology landscape.
— news from Business Insider