Amazon Restructures for AI

Amazon CEO Andy Jassy is pushing for a return to the company's startup roots by reducing bureaucracy and fostering agility. This shift involves streamlining the organisational structure that had expanded over years of rapid hiring. The goal is to enable Amazon to compete more effectively in the fast-evolving AI landscape.

Amazon's organisational structure is a functional one that focuses on different business functions and components as bases for defining the interactions and reporting relationships among these different components. The restructuring aims to empower smaller, more nimble teams. This approach contrasts with the previous model, where increasing headcount led to management layers that slowed decision-making. By flattening the hierarchy, Jassy intends to accelerate innovation and responsiveness, crucial for capitalising on AI opportunities.

This strategic pivot reflects a broader trend in the tech industry, where companies are recognising the need for leaner, more adaptable structures to thrive in the age of AI.