Amazon CEO Andy Jassy announced significant changes to the company's work policies and organizational structure in a message to employees on September 16, 2024. The announcement, made just one day prior to the current date, outlines two major shifts aimed at strengthening Amazon's culture and team dynamics.
According to Jassy, Amazon will require employees to return to full-time office work starting January 2, 2025. This change marks a departure from the current hybrid model implemented after the COVID-19 pandemic. Jassy stated, "When we look back over the last five years, we continue to believe that the advantages of being together in the office are significant." He emphasized benefits such as easier collaboration, more effective brainstorming and innovation, and stronger team connections.
The CEO acknowledged that this transition might require adjustments for some employees who have adapted their personal lives to remote work. To address this, Amazon is providing a transition period of over three months, from the announcement date to the implementation date.
In addition to the return-to-office mandate, Jassy announced plans to restructure the company's management layers. The goal is to increase the ratio of individual contributors to managers by at least 15% by the end of the first quarter of 2025. This change aims to reduce bureaucracy, speed up decision-making, and bring decision-making closer to front-line employees who directly impact customers.
Jassy explained the rationale behind this change, stating, "As we have grown our teams as quickly and substantially as we have the last many years, we have understandably added a lot of managers. In that process, we have also added more layers than we had before."
To combat potential bureaucratic issues, Jassy has created a "Bureaucracy Mailbox" where employees can report instances of unnecessary processes or rules. He committed to personally reading these emails and taking appropriate action.
The announcement also revealed plans to reintroduce assigned desk arrangements in U.S. headquarters locations, including Puget Sound and Arlington. European offices, which previously had agile desk arrangements, will continue with that system.
Jassy emphasized the importance of Amazon's culture in his decision to remain with the company for 27 years, far longer than his original plan. He described Amazon's culture as unique and critical to its success, highlighting attributes such as customer focus, long-term perspective, and lack of bureaucracy.
The CEO's message included specific goals for Amazon's organizational culture:
- Operating like the world's largest startup
- Maintaining a passion for customer-focused innovation
- Fostering a sense of urgency in pursuing opportunities
- Encouraging high ownership among employees
- Facilitating fast decision-making
- Promoting scrappiness and frugality
- Enabling deeply-connected collaboration
- Cultivating a shared commitment among team members
Jassy acknowledged the challenges of maintaining a strong culture given Amazon's rapid growth and diverse business portfolio. He stated, "Strengthening our culture remains a top priority for the s-team and me. And, I think about it all the time."
The announcement comes as Amazon continues to experience growth across its various business segments. Jassy noted positive developments in Stores, AWS, Advertising, Prime Video, and emerging areas such as GenAI, Kuiper, and Healthcare.
Key facts
- Full-time office return date: January 2, 2025
- Target increase in individual contributor to manager ratio: 15% by end of Q1 2025
- Creation of a "Bureaucracy Mailbox" for employee feedback
- Reintroduction of assigned desks in U.S. headquarters
- Continuation of agile desk arrangements in European offices
- Amazon's annual revenue growth: From $15 million before Jassy joined to over $600 billion expected this year