Amazon is mandating that corporate employees return to the office five days a week, as stated by CEO Andy Jassy in a memo released on Monday.
This is a notable change from the previous policy, which allowed staff to work remotely for two days a week and required them to be in the office at least three days weekly. Employees have until January 2, 2025, to comply with this new directive.
According to Jassy, corporate staff will be expected to work in the office full-time unless they face exceptional circumstances or have received permission from their respective S-team leader, referring to the senior executives who report directly to him. He emphasised that prior to the pandemic, remote work was not standard practice and that this expectation will persist moving forward.
“Before the pandemic, it was not a given that folks could work remotely two days a week, and that will also be true moving forward — our expectation is that people will be in the office outside of extenuating circumstances,” Jassy noted.
In addition to the return-to-office policy, Amazon plans to streamline its corporate structure by reducing the number of managers. Jassy indicated that each S-team organisation should aim to increase the ratio of individual contributors—employees who do not manage others—to managers by at least 15% by the end of Q1 2025.
This restructuring aims to eliminate unnecessary layers within the organisation to enhance efficiency and decision-making processes.
As part of this initiative, teams will evaluate their structures and may identify positions that are no longer necessary. Any changes will be communicated at the team level.
The company experienced significant growth in its workforce during the pandemic but has since implemented substantial cost-cutting measures, including its largest layoffs in 27 years.
In Q2 2024, Amazon reported a headcount of 1.53 million employees, reflecting only a 5% increase from the previous year.
Jassy expressed that these changes are intended to fortify Amazon’s corporate culture and maintain agility within the organisation. He highlighted efforts such as establishing a “bureaucracy mailbox” aimed at identifying and eliminating superfluous processes and rules within the company.
“We want to operate like the world’s largest startup,” he stated, emphasising values such as innovation for customers, urgency in seizing opportunities, high ownership levels, rapid decision-making, resourcefulness, collaborative teamwork, and mutual commitment among employees.
Following this announcement, Amazon’s stock saw a slight decline during afternoon trading sessions.
