Amazon CEO shifts promotion focus, prioritizes efficiency over team size

Amazon CEO Andy Jassy announced a significant shift in the company's promotion strategy, emphasizing efficiency over team size during an internal town hall. Jassy, in a recording obtained by Business Insider, stated Amazon is "actively changing how it thinks about promotions," favoring leaders who "get the most done with the least amount of resources."

"The way to get ahead at Amazon is not to go accumulate a giant team and fiefdom," Jassy declared. "There's no award for having a big team. We want to be scrappy." He highlighted successful Amazon Web Services products launched with small teams, arguing against large-scale project staffing.

This shift aligns with Amazon's recent effort to increase individual contributors relative to managers by 15%, aiming to reduce bureaucracy. Jassy stressed meritocracy, saying, "What matters is what we actually get done for customers. That is what we reward."

He urged employees to "move fast and act like owners," acknowledging intense competition from agile startups. "What would I do if this was my company?" Jassy asked, encouraging awareness of internal goals and external innovations.