Amazon CEO Andy Jassy recently announced a change in the company’s return-to-office policy, requiring corporate staffers to be in the office five days a week, a significant shift from the previous requirement of three days a week. The new policy goes into effect on January 2, giving employees time to adjust. Jassy also outlined plans to simplify the corporate structure by reducing the number of managers, aiming to remove layers and flatten organizations. The goal is to strengthen the company’s culture and ensure nimbleness, with an emphasis on operating like a startup, constantly inventing for customers, and fostering fast decision-making and collaboration.
In a memo to employees, Jassy emphasized the importance of Amazon’s unique culture and the need to constantly work at strengthening it amidst the company’s rapid growth and expansion into new areas. He highlighted the benefits of being in the office for fostering collaboration, learning, and reinforcing the company’s culture. Jassy cited the advantages of being together in person, including easier collaboration and brainstorming, better learning opportunities, and stronger team connections. The return to full-time office work is intended to maintain and enhance these benefits while also allowing for remote work in certain circumstances, as was the case before the onset of the pandemic.
As part of the effort to streamline the organizational structure, Amazon plans to increase the ratio of individual contributors to managers by at least 15% by the end of the first quarter of 2025. This move aims to empower employees to move fast, increase ownership, drive decision-making closer to the front lines, and decrease bureaucracy. Jassy created a “Bureaucracy Mailbox” for employees to report examples of unnecessary processes or excessive rules that can be eliminated to promote efficiency. The company will work thoughtfully with its PxT team to evolve organizations and achieve these goals in the coming months.
The decision to require full-time in-office work represents a return to Amazon’s pre-pandemic policy, which was based on the belief in the significant advantages of being physically present in the workplace. While some flexibility for remote work will remain, the expectation is that employees will be in the office on a regular basis. The company will reinstate assigned desk arrangements in certain locations, while maintaining agile desk arrangements in others. Amazon acknowledges that this transition may require some adjustments for employees and is working on a plan to accommodate these changes, with an effective date of January 2, 2025.
Jassy expressed gratitude to leaders and support teams for their efforts to improve organizational structures in the face of challenges posed by the company’s size and complexity. He reiterated the importance of Amazon’s culture in driving the company’s success and emphasized the shared commitment to making a difference in customers’ lives, inventing on their behalf, and quickly solving their problems. Jassy expressed optimism that the changes being implemented will enhance the company’s ability to achieve its goals, while strengthening its culture and the effectiveness of its teams.
