Amazon has announced it will not increase its hiring budget this year for its retail business, despite the company still hiring across various departments. The move is part of CEO Andy Jassy’s efforts to boost profit margins and operational efficiency through cost-cutting measures.
The decision comes after Amazon reported a record profit of $59 billion in 2024, nearly double its result from the previous year. As a result, the retail business will keep its operating expenses, including employee salaries and stock-based compensation, flat this year compared to last year.
The company has shifted its focus from managing “opex targets versus headcount targets” to having predefined budgets for each team. This change aims to encourage managers to be more flexible with their spending on staffing costs. The move is part of Jassy’s relentless push for increased efficiency and higher profit margins since taking over as CEO in 2021.
Amazon continues to hire across the company, but the retail arm remains focused on cutting costs. The decision not to increase its hiring budget will allow managers to stay within financial limits and make more flexible staffing decisions, such as opting for lower-cost candidates or contractors.
Source: https://www.businessinsider.com/amazon-freezes-hiring-budget-retail-business-this-year-2025-6