Amazon CEO changes promotion criteria before appraisals, says ‘we want to be scrappy’
Amazon CEO Andy Jassy has announced a major change in the company’s approach to promotions, signaling a shift away from traditional corporate hierarchies. In a recent town hall meeting, Jassy emphasized that building large teams will no longer be the key to career growth at Amazon. Instead, the company will focus on efficiency, rewarding employees who achieve the most with minimal resources.
According to a recording of last week’s all-hands meeting obtained by Business Insider, Jassy told employees that Amazon is "actively changing how it thinks about promotions." He stated that the most effective leaders are not those who manage the biggest teams but rather those who deliver results efficiently. “The way to get ahead at Amazon is not to go accumulate a giant team and fiefdom,” Jassy said. “There's no award for having a big team. We want to be scrappy about us to do a lot more things.”
Jassy’s announcement comes as Amazon completes an internal restructuring to increase the ratio of individual contributors to managers by 15%. This initiative is part of a broader effort to streamline operations, reduce bureaucratic layers, and promote agility within the company.
During the town hall, Jassy pointed to Amazon Web Services (AWS) as an example of how small, highly focused teams can drive innovation. He highlighted that some of AWS’s most successful products were initially launched by teams of only a dozen people. “Every new project shouldn’t take 50 or more people to do it,” he remarked, reinforcing the company’s shift toward leaner structures.
This new promotion philosophy aligns with Amazon’s push to enhance workplace productivity, following the company’s recent mandate requiring employees to work from the office five days a week starting January 2025. The policy, which has sparked controversy among employees, underscores Amazon’s commitment to fostering a high-performance culture.
Jassy’s message also underscored Amazon’s focus on meritocracy. He stated that promotions would be based on actual impact rather than interpersonal skills or corporate maneuvering. “It's not how charismatic you are. It's not whether you're really good at managing up or managing sideways. What matters is what we actually get done for customers. That is what we reward,” he asserted.
Additionally, Jassy urged employees to adopt an ownership mindset, asking them to work with urgency and accountability. He acknowledged the fierce competition Amazon faces from highly driven startups and established tech giants. “What would I do if this was my company? And by the way, it is your company. This is all of our company,” he told employees, encouraging them to stay proactive and innovative.
A culture shift at Amazon?
Jassy’s comments indicate a significant cultural shift within Amazon, where performance and efficiency are taking precedence over managerial influence. The new promotion strategy is expected to impact employees across various departments, especially as the company continues to refine its internal structures.
While some employees may welcome this approach as an opportunity to shine based on merit, others may find it challenging to adapt to an environment where promotions are not tied to team size or corporate networking. As Amazon moves into its next phase of growth, it remains to be seen how this policy will affect morale, innovation, and long-term employee retention.