Amazon CEO Andy Jassy will be making major operational revisions aimed at streamlining the company. Beginning in January 2025, employees will need to return to the office five days a week.

This decision follows his recognition of inefficiencies within Amazon, including excessive meetings and bureaucracy obstructing decisions.

In a memo to employees, Jassy also outlined a plan aiming to increase the ratio of individual contributors to managers by 15% in key divisions by the end of March 2025.

As part of this initiative, the company will also establish a bureaucracy reporting hotline for employees to voice concerns regarding unnecessary administrative processes.

While the new office return policy provides limited exceptions for specific circumstances, employees will have a transition period to adjust their arrangements.

This shift is expected to increase foot traffic in urban locales where Amazon maintains a significant presence, such as Seattle, Arlington, Virginia, and the San Francisco Bay Area. Amazon employs about 1.5 million people worldwide, with most being hourly workers.

Before recent layoffs starting in late 2022, the company had around 350,000 office-based employees. However, previous efforts to mandate a return to office settings have encountered obstacles, as employees cited insufficient data supporting the advantages of in-person work.