Amazon is shaking things up internally with a restructuring plan and stricter return-to-office (RTO) policies. CEO Andy Jassy has announced changes that aim to increase the number of individual contributors relative to managers, while simultaneously mandating a full return to office work for corporate employees. This dual approach has stirred a range of reactions among Amazon’s workforce and industry observers, setting the stage for potentially far-reaching changes within the company.
What’s Happening & Why This Matters
Amazon’s latest internal strategy centers on two main objectives: reducing the number of managers and enforcing a stricter in-office policy. According to an internal document, the company plans to increase the ratio of individual contributors to managers by at least 15% by the end of the first quarter of 2025. The shift aims to flatten the organization, empower frontline decision-making, and cut down on unnecessary layers and processes. However, this change could lead to the elimination of some roles, as departments evaluate their structures to determine which positions are essential.
Amazon argues that these changes will enhance its agility and drive decision-making closer to the customer level, thereby reducing bureaucracy. CEO Andy Jassy stated, “If we do this right, it will increase our teams’ agility and ability to move fast, clarifying and invigorating their sense of ownership.”
Stricter Return-to-Office Policy Sparks Backlash
In addition to restructuring, Amazon announced a mandate requiring corporate employees to return to the office five days a week starting in early 2025. This policy change has not gone down well with all employees. Many took to internal Slack channels to express their dissatisfaction, describing the policy as a step backward rather than a return to pre-pandemic norms. The announcement follows 15 months of a hybrid model that required employees to be in the office three days a week.
One employee captured the mood by stating, “This isn’t going back to how it was before; it’s just going backward.” Others questioned the company’s commitment to its stated mission of “striving to be Earth’s Best Employer.”
Reactions and Consequences
The response to these new policies has been mixed. Some employees expressed anger and frustration, arguing that these changes undermine morale and ignore the benefits of remote work that many have enjoyed over the past few years. For example, Stanford economist Nicholas Bloom predicted a potential spike of 20% to 30% in employee resignations due to the strict RTO mandate, noting that similar policies have often led to increased turnover.
Research from Gartner supports these concerns, showing that mandatory in-office work decreases employee retention, especially among high performers. Meanwhile, Deborah McGee, president of PZI Group, pointed out that younger employees might benefit from in-office work due to lost mentorship opportunities during the pandemic. She argued, “Business happens in the hallways, parking lots, and after hours. It doesn’t always happen through remote communication.”
So…
Amazon’s decision to restructure and enforce a stricter RTO policy could set an example for other tech companies grappling with post-pandemic work models. However, it has already drawn criticism and sparked fears of increased attrition among employees. Experts warn that, while some managers may see the current labor market as more favorable for pushing such mandates, the reality is that forcing workers back into the office may not result in the desired benefits.
Gartner’s research indicated no substantial performance gains from such policies, with some employees, particularly introverts, feeling less productive in an office setting. Julia Hobsbawm, a consultant and author, noted that the move reflects a lack of trust in both management skills and the workforce itself, stating, “They’re treating white-collar workers like factory-floor workers, and that approach is unlikely to succeed.”
TF Summary: What’s Next
Amazon’s restructuring and new RTO policy have generated significant internal and external discussions. While the company sees its decisions as streamlined decision-making and reinforcing a culture of ownership, the reaction from employees suggests these changes may lead to unintended consequences such as increased turnover and reduced morale. As Amazon, and other companies navigate the post-pandemic workplace, the policies’ outcomes will provide critical lessons for the future of work in tech. How Amazon balances its goals with employee satisfaction and retention remains to be seen, but the debate around remote work and management structure is far from over.