This move marks a departure from the previous policy, which mandated a minimum of three days in the office. The new policy will take effect from January 2, as reported by CNBC.
In a comprehensive memo to staff, Jassy also revealed plans to streamline Amazon's corporate structure by reducing the number of managers. This move is aimed at "removing layers and flattening organizations," a strategy that aligns with the company's rapid growth during the pandemic and subsequent cost-cutting measures under Jassy's leadership. These measures included the largest layoffs in Amazon's 27-year history as a public company.
Jassy's memo emphasized the need for these changes to bolster Amazon's corporate culture and maintain its agility. He highlighted the creation of a "bureaucracy mailbox," a dedicated email alias designed to identify and eliminate unnecessary processes or excessive rules within the company. "We want to operate like the world's largest startup," Jassy wrote. "That means having a passion for constantly inventing for customers, strong urgency (for most big opportunities, it's a race!), high ownership, fast decision-making, scrappiness and frugality, deeply-connected collaboration (you need to be joined at the hip with your teammates when inventing and solving hard problems), and a shared commitment to each other."
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The memo from Jassy, which was shared in full, outlined the reasons behind these changes and the company's vision moving forward. He expressed satisfaction with the progress made by various departments, including Stores, AWS, and Advertising, and acknowledged the challenges of maintaining a strong corporate culture amidst rapid growth and innovation.
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September 17, 2024
Jassy's tenure at Amazon spans 27 years, a period during which the company's annual revenue has surged from $15 million to over $600 billion. He attributes his long stay at Amazon to the company's unique culture, customer focus, and the opportunities presented by its growth and innovation. "Our culture is unique, and has been one of the most critical parts of our success in our first 29 years. But, keeping your culture strong is not a birthright. You have to work at it all the time," Jassy wrote.
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The CEO also addressed two key areas of concern: the company's organizational structure and its ability to innovate and collaborate effectively. He noted that the rapid growth of the company had led to an increase in managerial positions, which had inadvertently added more layers than necessary. To address this, Jassy announced a target to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. This move, he believes, will enhance the company's agility, invigorate ownership, and reduce bureaucracy.
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On the topic of returning to the office, Jassy highlighted the benefits of in-person collaboration and learning, which he believes are more effective in an office setting. He acknowledged that while remote work was necessary under certain circumstances, the expectation moving forward is for employees to be in the office unless there are extenuating circumstances or an approved Remote Work Exception.
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In conclusion, Jassy thanked the company's leaders and support teams for their efforts in improving the organizational structure. He reiterated his belief in the importance of maintaining a strong culture at Amazon and expressed optimism that the changes would enhance the company's ability to serve its customers and strengthen its teams.
