Amazon manages over 1.5 million employees across dozens of countries, yet the company still launches products and enters new markets faster than most startups. The secret isn't just talent or technology - it's how the organization is designed.

This guide breaks down Amazon's hierarchical structure, the leveling system from L1 to L12, and the management principles that keep teams aligned while moving quickly.

What is Amazon's organizational structure

Amazon has a hierarchical structure with strong functional divisions (like AWS, Consumer, and Finance) and geographic segmentation (North America and International). A senior leadership team called the S-Team reports to CEO Andy Jassy, and this group oversees accountability across business units while small, agile "two-pizza" teams handle innovation and day-to-day execution.

So what does that actually mean? An organizational structure is simply how a company arranges its people, roles, and reporting relationships. Think of it as the blueprint that shows who reports to whom and how different teams connect. Amazon's version combines a traditional top-down hierarchy with pockets of autonomy that let smaller teams move fast.

The hierarchical piece means decisions flow from the top down through clearly defined chains of command. With over 1.5 million employees worldwide, this clarity matters - everyone knows who makes final calls and where to escalate issues.

At the same time, Amazon groups employees by function (engineering, operations, finance) and by geography (North America, International). This hybrid setup gives the company both specialized expertise and regional flexibility.

Types of organizational structures at Amazon

Amazon doesn't rely on just one organizational model. Instead, the company blends several structural types to balance control with speed. This hybrid approach is part of what allows a company this large to still launch products and enter new markets quickly.

Global hierarchical structure

The vertical chain of command runs from Andy Jassy through senior vice presidents, vice presidents, directors, and managers down to individual contributors. Everyone has a clear reporting line, and strategic direction flows from the CEO and S-Team downward.

This hierarchy creates accountability. When something goes wrong, or right, there's no confusion about who owns the outcome.

Functional structure by department

Amazon also groups employees by specialized functions. Engineers work with other engineers, operations specialists collaborate with their peers, and finance professionals share resources within their department.

Why does this matter? Functional groupings allow deep expertise to develop. AWS engineers learn from other cloud computing specialists rather than being scattered across unrelated teams. The same applies to legal, HR, marketing, and every other function.

Geographic divisional structure

On top of the functional structure, Amazon organizes retail and operations by region. Major divisions cover North America (US, Canada, Mexico), International markets (Europe, Japan, emerging markets), and specific country operations where local nuances require dedicated attention.

Each geographic division handles its own logistics, customer service, and regulatory compliance. This setup lets Amazon adapt to local preferences and legal requirements while maintaining global consistency.

Matrix collaboration across teams

Here's where it gets interesting. Amazon also uses matrix elements, which means employees often report to both a functional manager and a project lead at the same time.

When Amazon launches a new product, team members from engineering, marketing, operations, and finance work together under a project leader. But they still maintain their regular reporting relationships within their functions. This cross-functional collaboration enables flexible resource allocation without permanently restructuring departments every time priorities shift.

Amazon corporate hierarchy and management levels

Amazon uses a leveling system that defines roles, compensation, and scope of responsibility across the entire organization. If you've ever wondered what "L6" means when someone mentions their Amazon job, this section explains it.

Executive leadership tier

At the top sits CEO Andy Jassy and the board of directors. The board provides corporate governance and strategic oversight - reviewing major decisions, approving executive compensation, and representing shareholder interests.

Jassy sets overall company direction and chairs the S-Team, a small group of senior executives who meet regularly to align on priorities and resource allocation.

Senior management levels

Below the CEO, Senior Vice Presidents and Vice Presidents lead major business units and functions. These leaders typically sit at levels L11 and L12 in Amazon's system, and they own significant portions of the company's operations.

An SVP might oversee all of AWS, while a VP could lead a specific service like Prime Video or the advertising business.

Mid-level management and individual contributors

Between senior leadership and entry-level employees, you'll find Directors, Senior Managers, and Managers. These roles translate strategic direction into operational execution and manage the teams doing day-to-day work.

Individual contributors at various levels handle specialized work without direct reports. A principal engineer at L7, for example, might have enormous influence on technical decisions without managing anyone.

Understanding Amazon levels L1 through L12

Amazon's internal leveling system provides consistency across roles and locations. Here's how it breaks down:

• L1-L3: Warehouse associates, fulfillment center workers, and entry-level roles

• L4-L6: Individual contributors, managers, and senior managers in corporate functions

• L7-L10: Principal engineers, directors, and senior directors with broad organizational impact

• L11-L12: Vice presidents and senior vice presidents leading major business segments

Each level corresponds to specific compensation bands and expectations for leadership and impact. An L5 in Seattle has roughly the same scope and pay range as an L5 in Austin or London.

Amazon leadership team and key executives

The management team divides responsibilities across Amazon's diverse business portfolio. Each executive owns specific outcomes and reports to the CEO.

CEO and board of directors

Andy Jassy serves as President and CEO, having previously founded and led AWS from its inception in 2006. Before becoming CEO in 2021, he spent over two decades at Amazon building the cloud business into a major profit center.

The board of directors includes independent members who provide oversight on governance, risk management, and long-term strategy.

Senior vice presidents and division heads

Senior vice presidents lead Amazon's largest business segments. These executives own profit-and-loss responsibility for their divisions, meaning they're accountable for both revenue and costs.

Current division heads oversee areas including Worldwide Amazon Stores, AWS, Devices and Services, and Global Corporate Affairs.

Amazon managing directors and their functions

Managing directors oversee specific business areas or regional operations. A managing director might run Amazon's operations in a particular country or lead a product category within the retail business.

These roles bridge the gap between senior executives setting strategy and operational managers executing it.

Amazon divisions and business units

Amazon organizes its operations into major business units, each functioning somewhat independently while sharing corporate resources like HR, legal, and finance.

Amazon Web Services

AWS operates as Amazon's cloud computing division, offering infrastructure, platform, and software services to businesses worldwide. It has its own leadership structure, its own profit center, and considerable autonomy in how it operates.

For context, AWS generates a significant portion of Amazon's operating income despite representing a smaller share of total revenue than the retail business.

North America and International retail

The core e-commerce divisions handle marketplace operations, fulfillment, and customer service. North America covers the United States, Canada, and Mexico. International manages Europe, Japan, Australia, and emerging markets.

Each region has its own leadership team and operational infrastructure, though they share technology platforms and best practices.

Devices and digital services

This division develops and sells hardware products including Kindle e-readers, Echo smart speakers, Fire TV, and Ring security devices. The team also manages related digital services and content that make the hardware more valuable.

Advertising and subscription services

Amazon's advertising business offers sponsored products and display advertising to sellers and brands on the platform. It's grown into one of the largest digital advertising businesses globally.

Subscription services, anchored by Amazon Prime, operate as a distinct business unit focused on member acquisition, retention, and expanding the benefits that keep subscribers engaged.

Amazon org chart and internal organizational structure

The organizational chart visualizes reporting relationships from the CEO through business units to individual teams. While the full chart encompasses thousands of roles, the high-level structure follows a consistent pattern:

• Centralized leadership: CEO and S-Team set strategy and allocate resources across the company

• Business unit structure: Major divisions operate semi-autonomously with their own profit-and-loss accountability

• Functional support: Shared services like HR, Legal, and Finance support all divisions

Teams connect through both formal reporting lines and informal collaboration networks. The matrix elements mean a product manager might work closely with engineers, marketers, and operations specialists who all report to different leaders.

Amazon's management model and operating principles

Structure alone doesn't explain how Amazon actually works. The company's management model and operating principles bring the organizational design to life.

Customer-centric decision making

Amazon's leadership principles start with "Customer Obsession," and this focus shapes decision-making at every level. Teams evaluate choices based on customer impact rather than competitor actions or internal politics.

This principle guides everything from product development priorities to how customer service representatives handle complaints. When in doubt, the question is always "what's best for the customer?"

Two-pizza teams and decentralized innovation

The two-pizza team concept keeps groups small enough that two pizzas could feed everyone - typically six to ten people. Jeff Bezos introduced this approach to prevent the communication overhead that slows larger organizations.

Each two-pizza team owns a specific product or feature end-to-end. They can make decisions quickly without waiting for approval from distant executives. In practice, this means Amazon operates like a collection of small startups rather than one monolithic company.

Data-driven accountability and metrics

Amazon uses metrics extensively to drive accountability. Teams define key performance indicators, track them rigorously, and review progress in regular business reviews.

This data-driven approach removes ambiguity about performance. If a team's metrics are trending down, everyone knows it - and everyone knows who's responsible for fixing it.

Why Amazon's organizational structure works

Amazon's structural choices directly support its business outcomes. The combination of hierarchy, functional expertise, and small autonomous teams creates a system that scales while maintaining speed.

• Clear accountability: The hierarchical structure ensures someone owns every decision and outcome

• Flexibility: Matrix elements allow cross-functional collaboration without adding bureaucracy

• Scalability: Geographic and functional divisions enable global growth without losing local relevance

• Innovation: Small teams maintain startup-like agility within a massive organization

The structure also supports Amazon's culture of experimentation. Teams can try new approaches without requiring approval from distant executives, while the hierarchy ensures alignment on major strategic bets.

How to apply Amazon's organizational framework

Organizations looking to learn from Amazon's approach can adapt these principles to their own context and scale.

1. Assess your current organizational design

Start by mapping your existing structure and identifying where decision-making bottlenecks occur. Look for areas where accountability is unclear or where teams lack the autonomy to move quickly on opportunities.

2. Implement cross-functional team structures

Consider organizing around products or customer outcomes rather than purely functional lines. Small teams with clear ownership often outperform larger groups with diffused responsibility, regardless of company size.

3. Scale with data and technology

Invest in the metrics and systems that enable data-driven decision-making. As organizations grow, consistent measurement becomes essential for maintaining accountability without micromanagement.

Building a scalable business structure for sustainable growth

The right organizational structure enables growth at scale by balancing control with autonomy. Amazon's hybrid approach - hierarchical where it matters, decentralized where speed counts - offers a model worth studying for companies at any stage.

Structure alone won't guarantee success, but misaligned structure can certainly prevent it. Companies that thoughtfully design their organizations around customer outcomes, clear accountability, and empowered teams position themselves for sustainable growth.

For businesses looking to optimize their organizational approach and drive measurable growth, Darkroom helps companies build scalable strategies aligned with their unique goals. Schedule an introductory call to explore how Darkroom can help your business grow.

FAQs about Amazon's organizational structure

What is the difference between Amazon levels and traditional corporate titles?

Amazon uses a numerical leveling system (L1-L12) that determines compensation and scope of responsibility. Traditional companies rely primarily on titles like Manager or Director, which vary in meaning across organizations. An L6 at Amazon has a specific compensation band and expected impact level regardless of their title, creating consistency that traditional title-based systems often lack.

How has Amazon's organizational structure evolved since its founding?

Amazon started as a small, flat organization focused on book sales with Jeff Bezos directly involved in most decisions. As the company expanded into new markets and launched AWS, the structure evolved into the complex hierarchy with multiple divisions and geographic regions that exists today. The two-pizza team concept emerged specifically to preserve startup-like agility as the company scaled past thousands of employees.

How does Amazon's org structure compare to other tech companies like Google or Microsoft?

Amazon's structure is more hierarchical and metrics-driven than Google's flatter, project-based approach. Google emphasizes engineer autonomy and famously allowed "20% time" for personal projects. Microsoft shares some similarities with Amazon's divisional organization around product lines, though Microsoft has historically operated with more independence between divisions. Amazon's emphasis on single-threaded leadership - one leader fully dedicated to one initiative - distinguishes it from both competitors.

Who are the largest shareholders of Amazon?

The largest shareholders include founder Jeff Bezos (who retains a significant stake despite stepping down as CEO), institutional investors like Vanguard and BlackRock, and CEO Andy Jassy. Ownership is distributed across millions of individual and institutional investors through publicly traded shares on the NASDAQ exchange.