RTO in January. Layoffs and buybacks in February and March. Additional offshoring announced in September. You can mark your calendars.
When Jassy took over in 2021, he committed to rigorous cost cutting.
Jeff Bezos has degrees in CS and EE.
Andy Jassy has an MBA.
Jassy took over from the AWS side in 2021 with a $200M package that is nearly all stock. This makes stock price the only significant metric at Amazon for the next 10 years.
Jack Welch.
Jassy - frugal, flatten, de-layer, bloated.
He's talking about people. But he's only referencing them as costs.
The ominous warning to managers?
That's "pink collar". Those jobs will become contract positions or will be offloaded entirely to "services companies". Instant balance sheet and risk shift, stock rise.
New corporate hires will be even more tethered by options.
Here's the full letter.
One of my favorite parts (because they already have the list, they want to push folks out first and save severance):
"So, we’re asking each s-team organization to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025"
So, let's think a bit here.
He doesn't like large bloated teams and managers of large teams got an ominous warning about the wonders of 20 man teams...
Simultaneously, the corporate target is to increase the ratio of ICs to managers by March.
🤔
Two rules in tech that have proven true over and over:
Don't put the finance guy in charge.
Don't put the sales guy in charge.
🤷🏻♀️
@Cosmichomicide Whoever is in charge, don't measure their personal success by marginally relevant and/or manipulable metrics.
Eh. Stock price is one measure of a company's health. But when the top brass and talent are pulling most of their compensation from it, it becomes the only measure of concern.
@Cosmichomicide @00pi Misplaced incentives make bad things happen every time…cough Wells Fargo cough 😒