If you’ve spent any time in a massive corporation, you know the "empire builder." They’re the VP whose primary goal seems to be hiring as many people as possible, not because the work requires it, but because a bigger headcount usually equals more power, more budget, and a fancier title. Honestly, it’s a tale as old as time. But at Amazon, that era is officially hitting a wall.
CEO Andy Jassy has been on a bit of a warpath lately. He isn't just asking people to come back to the office five days a week; he’s actively dismantling what he calls manager fiefdoms.
In a series of candid internal meetings and memos that leaked throughout late 2024 and into 2025, Jassy made one thing very clear: the path to the top at Amazon is no longer about how many people report to you. In fact, if you're trying to grow your "fiefdom" just to look important, you're probably the next one on the chopping block.
The End of the "Empire Builder" Era
For years, the unwritten rule in Big Tech was that more reports meant more prestige. If you managed 500 people, you were a "bigger deal" than the person managing 50. Jassy is trying to flip that script. He told employees point-blank that there is "no award for having a big team."
Basically, he’s tired of the bloat.
Amazon grew at a breakneck pace during the pandemic. They hired thousands. They added layers. And with those layers came what Jassy calls "pre-meetings for the pre-meetings." You’ve probably been there—sitting in a Zoom call to discuss what you're going to say in the actual meeting where the decision happens. It’s exhausting, and for a company that prides itself on "Day 1" thinking, it's a slow death.
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The numbers back up this aggressive shift. Amazon set a goal to increase the ratio of individual contributors (ICs) to managers by at least 15% by the end of Q1 2025. This isn't just a suggestion. It’s a structural mandate. By thinning out the middle management ranks, Jassy is forcing the remaining leaders to get their hands dirty again.
Why Amazon CEO Calls Out Manager Fiefdoms Now
It’s not just about saving money, though Morgan Stanley analysts estimated that cutting these managerial layers could save Amazon upwards of $3 billion annually. The real driver is the AI race.
While AWS (Amazon Web Services) is still a juggernaut, the competition from Microsoft and Google in the generative AI space is relentless. Startups are moving at lightspeed. Jassy pointed out that some of Amazon’s most successful products started with teams of just 10 or 12 people.
When you have a "fiefdom" of 50 people trying to launch a simple feature, things get bogged down in:
- Decision Paralysis: Too many stakeholders needing to "put their fingerprint" on the project.
- Social Loafing: In giant teams, it’s easier for people to hide or do work that doesn't actually move the needle.
- Internal Politics: Managers spend more time "managing up" to protect their headcount than they do innovating for customers.
Jassy’s message is a "return to roots" kind of thing. He wants Amazon to operate like the "world’s largest startup." That means fewer bosses and more builders.
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The "Bureaucracy Mailbox" and the Culture War
One of the more interesting—and controversial—moves Jassy made was creating a "Bureaucracy Mailbox." It’s exactly what it sounds like: an alias where any employee can email him directly to complain about a process that feels like a waste of time.
Since its launch, it has received over 1,500 emails, leading to more than 450 process changes.
Some employees think it’s a brilliant way to cut through the red tape. Others, honestly, find it a bit "snitch-heavy." One operations manager even told The HR Digest that the tipline felt like a way to "rat out your colleagues" rather than fix the culture.
Regardless of how you feel about it, the mailbox sends a signal: the CEO is watching, and he doesn’t want your middle-management overhead slowing down the engineers.
What This Means for Your Career (At Amazon or Anywhere Else)
If you’re a middle manager right now, the ground is shifting. The "Amazon CEO calls out manager fiefdoms" headline isn't just an Amazon story—it’s a signal to the entire tech industry. Meta did it with their "Year of Efficiency." Google is doing it. Salesforce is doing it.
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The old way of getting ahead—collecting people like Pokémon cards—is dying. Here is how the "new" meritocracy works:
- Efficiency over Size: In your performance reviews, focus on how much you accomplished with fewer resources. Proving you can do more with a team of 5 than a team of 15 is now a massive flex.
- Stay Technical: Even if you’re a manager, don’t lose your "builder" skills. Jassy is rewarding leaders who can still dive into the code or the product specs, not just those who can build a pretty slide deck.
- Ownership is King: At Amazon, "Ownership" is a core leadership principle. Fiefdoms are the opposite of ownership; they’re about protectionism. To get ahead, you have to be willing to let go of projects that aren't working, even if it means your team gets smaller.
The Harsh Reality of the 15% Shift
Let's be real for a second. Increasing the IC-to-manager ratio by 15% means a lot of managers are either being "de-leveled" back to individual contributors or they're being let go. In late 2025, reports indicated that roughly 14,000 managerial roles were targeted for elimination.
It’s a brutal transition. For some, it feels like a betrayal of the years they spent climbing the ladder. But from Jassy’s chair, it’s a survival move. He’s betting that a leaner, faster Amazon—even if it’s a more stressful one—is the only way to beat the "hungry" startups working 15-hour days to steal their lunch.
Next Steps for Action:
If you’re currently in a management role or aspiring to one, your priority should be internal audit. Review your team's current processes and identify at least two "pre-meetings" or approval layers that can be eliminated immediately. If you can't justify why every person on your team is essential to a specific customer outcome, it's time to proactively restructure before the "flattening" reaches your department. Focus your next 1-on-1 with leadership on how you are increasing the velocity of your team rather than asking for more headcount.