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Amazon is implementing a hiring freeze within its retail division for 2025, aiming to keep headcount- expenses flat as part of a broader push toward stricter budget controls. According to an internal memo revealed by Business Insider, any new corporate hires will now need “strong supporting reasons” and will face thorough evaluation. This hiring pause specifically affects roles in Amazon’s retail businesses, including its online marketplace, logistics, and Fresh grocery unit. Notably, it excludes warehouse employees and those working in Amazon Web Services (AWS), the company’s profitable cloud computing segment.

Amazon Adopts Budget-Driven Hiring Model for Greater Flexibility and Cost Control

This move marks a significant shift from Amazon’s traditional headcount-driven hiring model to a stricter, budget-focused approach. Rather than filling a set number of positions, managers are now given fixed financial budgets and must make staffing decisions accordingly. This structure allows greater flexibility, such as using temporary or contract workers, while enforcing leaner teams and better financial discipline.

Amazon spokesperson Zoe Hoffman clarified that hiring hasn’t come to a complete halt. Each business unit operates independently, and recruitment continues in areas where justified by business needs. She emphasized that this approach reflects a responsible strategy for managing growth at Amazon’s vast scale.

Amazon Pushes Efficiency for Growth and Profitability

The hiring policy is part of CEO Andy Jassy’s ongoing efficiency drive, which began in 2021. Under his leadership, Amazon has eliminated 27,000 roles, flattened its hierarchy, and adjusted compensation strategies—all contributing to record profits. In 2024, the company earned $59 billion in profit, nearly doubling its 2023 figures.

Retail CEO Doug Herrington signalled that further budget cuts are expected in 2025. In a recent meeting, he stressed the importance of continued cost reduction to support major investments in new ventures. With this budget-centric strategy, Amazon aims to remain agile, prioritize growth areas, and sustain operational efficiency amidst evolving business demands.

Summary:

Amazon is freezing corporate hiring in its retail division for 2025 to control costs, shifting to a budget-driven model that favors leaner teams and flexible staffing. Excluding AWS and warehouse roles, the policy supports CEO Andy Jassy’s efficiency drive, which has boosted profits and emphasizes long-term growth through disciplined spending.