The End of Corporate Bloat?
For years, big tech and other large corporations grew fat and happy. They hired legions of managers, created departments to oversee other departments, and generally allowed a bit of a corporate potbelly to develop. It was a luxury they could afford. Now, the belt is being tightened across the board. Amazon’s restructuring isn’t just about trimming the wage bill. It’s a fundamental rethink of how a modern business should be run. It’s about stripping out the layers of bureaucracy that slow things down and drain resources.
And when a company as famously obsessed with logistics and process as Amazon starts this sort of corporate spring clean, you can bet your bottom dollar that every other board in the FTSE 100 and S&P 500 is taking notes. The question for us as investors is simple. How does a company get leaner without simply falling apart? The answer, of course, is technology.