Amazon CEO Andy Jassy, who took over the leadership role from Jeff Bezos four years ago, has reportedly taken a “hardline approach” to reshaping the company's internal workings.
“We want to operate the world's largest startup at our size — that has not been done before. It is hard to do, but it is doable,” Jassy said at an internal all-hands, reported Business Insider.
What did Andy Jassy change?
Reportedly, the company increased worker-to-manager ratios by 15% after slashing layers of management. The CEO enforced strict disciplinary codes by monitoring company-issued phones, particularly to assess how much usage was company-related. The leader’s approach included most employees to return to the office five days a week.
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The CEO reportedly launched a “bureaucracy mailbox,” inviting employees to flag the management about rules or processes that can be streamlined or eliminated. As per the outlet, this approach has led to 375 changes within the company.
Is the reset working?
Some believe that this new approach is benefiting the organisation. The outlet reported that Amazon’s stock has risen more than 30% in the past year. Also, the profit per employee rose to $44,100 last year, reportedly five times more than in 2022.
How did the employees react?
{{/usCountry}}Some believe that this new approach is benefiting the organisation. The outlet reported that Amazon’s stock has risen more than 30% in the past year. Also, the profit per employee rose to $44,100 last year, reportedly five times more than in 2022.
How did the employees react?
{{/usCountry}}The outlet reported that employees are not totally on board with these changes, especially the return-to-office drive. While middle managers are increasingly forced to oversee larger teams, junior leaders feel left out, alleging that major decisions are often made by a tight-knit group consisting of top Amazon leaders.
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The company's cost-cutting has sparked dissatisfaction among employees, including some complaining about the breakdown of their expenses, down to the meals, during business trips. Many employees also fear for their job security.
Reportedly, during a company staff meeting, the CEO said, “We want owners,” adding, “What would I do if this was my money?” The executive said the best leaders are those who “get the most done with the least amount of resources required to do the job."