Amazon CEO Andy Jassy has announced a new policy that requires corporate staffers to spend five days a week in the office, marking a shift from the previous requirement of at least three days a week. The company is giving employees until January 2 to start adhering to this new policy. Jassy also plans to simplify Amazon’s corporate structure by reducing the number of managers to “remove layers and flatten organizations.” This decision comes after Jassy took over as CEO and implemented widespread cost-cutting measures, including the largest layoffs in the company’s history.
Jassy highlighted the importance of Amazon’s unique culture, which he described as being customer-focused, collaborative, and innovative. He emphasized the need to strengthen the company’s culture as it continues to grow and evolve. In order to maintain a culture that fosters invention and collaboration, Jassy and his senior leadership team have been focusing on two key areas: revising the organizational structure to promote ownership and speed, and ensuring that employees are connected and aligned with the company’s culture. By increasing the ratio of individual contributors to managers by at least 15% by the end of Q1 2025, Amazon aims to eliminate unnecessary layers and processes that can slow down decision-making and hinder innovation.
In addition to changes in the organizational structure, Amazon is also implementing a new office policy that requires employees to return to the office full-time, as they were before the onset of the COVID-19 pandemic. Jassy believes that the advantages of being together in the office are significant, citing benefits such as easier collaboration, stronger connections between teams, and the ability to learn and strengthen the company’s culture. While some flexibility will be allowed for extenuating circumstances, the expectation is that employees will be in the office five days a week. The company will also bring back assigned desk arrangements in certain locations.
Jassy acknowledged that some employees may need to make adjustments to their personal lives in order to comply with the new office attendance policy. To facilitate a smooth transition, Amazon is making the new expectation active on January 2, 2025. The Global Real Estate and Facilities team is working on a plan to accommodate desk arrangements and will communicate the details once finalized. Jassy expressed his gratitude to the company’s leaders and support teams for their efforts in improving the organizational structure and ensuring the effectiveness of Amazon’s teams. He emphasized the importance of maintaining the right culture at Amazon to continue making a difference in customers’ lives and driving innovation.
Overall, the changes announced by Andy Jassy reflect Amazon’s ongoing commitment to strengthening its culture, fostering collaboration, and driving innovation. By simplifying the organizational structure, encouraging ownership and speed, and requiring employees to return to the office full-time, Amazon aims to maintain its unique culture while adapting to the changing needs of its workforce and business. Jassy’s message reinforces the company’s focus on delivering the best for customers and the business, while also recognizing the challenges and opportunities that come with sustaining a strong culture in a rapidly growing and evolving company.
