Amazon’s retail division has frozen its hiring budget for 2025, maintaining flat headcount operating expenses compared to 2024, according to an internal email obtained by Business Insider. The memo from a finance leader in Amazon’s retail unit stated that any hiring requires “strong supporting reasons” and will face intense scrutiny.The hiring restrictions affect corporate employees across Amazon’s retail organization, including its online marketplace, logistics operations, and Fresh grocery business. However, the freeze doesn’t apply to warehouse workers or Amazon Web Services cloud division staff.

Shift from headcount to budget-based hiring approach

The retail division is transitioning from traditional headcount targets to strict budget management, giving managers predetermined spending limits for their teams. This approach forces leaders to balance hiring decisions against fixed financial constraints rather than simply filling predetermined positions.Amazon spokesperson Zoe Hoffman emphasized that maintaining a flat hiring budget doesn’t mean the company has stopped recruiting entirely. “Each of Amazon’s many businesses has its own approach to hiring based on its individual needs,” she told BI, describing the strategy as a “responsible way” to manage growth at the company’s scale.

CEO Jassy’s efficiency drive continues

The hiring freeze represents the latest move in CEOAndy Jassy‘s ongoing cost-cutting campaign since taking over in 2021. His efficiency initiatives have included eliminating 27,000 jobs since late 2022, streamlining management layers, and revamping compensation structures.These efforts have paid dividends financially, with Amazon reporting record profits of $59 billion in 2024, nearly double the previous year’s results. The company’s workforce, which doubled to 1.6 million employees between 2019 and 2021, has since declined to 1.55 million.Retail CEO Doug Herringtonhas closely monitored operating expenses over the past two years and recently told employees that belt-tightening would likely continue into 2025. “We have to keep reducing costs so that we can afford the big investments in big new businesses,” he explained at an internal meeting, according to BI’s previous reporting.The budget-focused approach gives managers more flexibility to hire contractors or temporary workers while encouraging leaner team structures.