Amazon and GitHub are cutting middle managers to speed decisions. The leaner structure carries operational risks, with GitHub already facing reliability issues tied to its Azure migration.
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Amazon and GitHub are trimming management layers, part of a push to operate with the speed of a startup. Amazon's internal memo framed the cuts as a way to reduce bureaucracy. GitHub removed several management tiers in recent months.
The premise is straightforward: fewer decision-makers, faster execution. The reality can be messier. GitHub has dealt with reliability issues this year, and the company linked some of the trouble to organizational changes during its cloud migration to Azure. Engineers are still working to stabilize the platform.
Amazon's cloud division reported solid revenue in its latest quarter. Investors will watch whether the leaner structure helps margins or creates new operating friction. The company's next earnings call is scheduled for late October. Amazon's earlier bond deal and debt signal indicated a focus on balance-sheet efficiency, a move that aligns with trimming overhead.
The trend raises a question no internal memo answers: can a company with tens of thousands of employees replicate the chaos and flexibility of a startup without breaking what already works?
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