Amazon CEO Claps Back at ‘Backdoor Layoff’ Accusations

Amazon CEO Andy Jassy has denied accusations that the company’s strict RTO mandate is a way of slimming down his workforce.

Amazon CEO Andy Jassy has denied accusations that the company’s strict RTO mandate is a way of slimming down his workforce.

At an all-hands meeting, Jassy also addressed the rumor that the policy was being driven by city leaders wanting to boost businesses around the Amazon hubs.

Despite rebellion from employees – most recently 500 from an Amazon Web Services (AWS) unit – Jassy has held firm to his policy, stating he expects staff to be in the office five days a week unless they have a household emergency or sick child.

‘Strengthening Culture’

According to a report from Reuters, Jassy told the assembled employees that he wanted to quash rumors that the RTO mandate was a sneaky way of getting rid of staff.

“A number of people I’ve seen theorized that the reason we were doing this is, it’s a backdoor layoff, or we made some sort of deal with city or cities. I can tell you both of those are not true. You know, this was not a cost play for us. This is very much about our culture and strengthening our culture.” -Andy Jassy, CEO of Amazon

‘Voluntary Resignation’

Jassy’s rhetoric on increased productivity and improved culture is not sitting well with employees. Not least because there is no data to back his claims.

The Amazon C-Suite has seen a very public backlash against its policy, including public letters, petitions, and even a walk out.

Amazon has responded by baring its teeth and stating bluntly that those who don’t want to meet the requirements, need to look elsewhere for a job. They will essentially be “voluntarily resigning” and will be locked out of company computers.

 

About Tech.co Video Thumbnail Showing Lead Writer Conor Cawley Smiling Next to Tech.co LogoThis just in! View
the top business tech deals for 2024 👨‍💻
See the list button

“It’s past the time to disagree and commit and if you can’t disagree and commit, I also understand that, but it’s probably not going to work out for you at Amazon.” – Andy Jassy, CEO of Amazon

The company also warned that employees who don’t comply could also see themselves sidelined from promotions.

What Will the RTO Look Like?

Jassy did admit in this latest meeting that the RTO will be tricky for many and the company is offering commuter benefits like subsidized parking rates to help employees out.

“It is an adjustment. I understand that for a lot of people, and we’re going to be working through that adjustment together.”

The policy kicks in on January 2nd, 2025, though Audible staff will have a couple more months of respite as their return is set for April 2nd.

In the meantime, Amazon employees continue to voice their concerns about a policy they argue is stricter than the mandates they saw prior to the pandemic. But Jassy is refusing to change his mind and so employees are facing a choice between staying put and flexibility.

Did you find this article helpful? Click on one of the following buttons
We're so happy you liked! Get more delivered to your inbox just like it.

We're sorry this article didn't help you today – we welcome feedback, so if there's any way you feel we could improve our content, please email us at contact@tech.co

Written by:
Katie has been a journalist for more than twenty years. At 18 years old, she started her career at the world's oldest photography magazine before joining the launch team at Wired magazine as News Editor. After a spell in Hong Kong writing for Cathay Pacific's inflight magazine about the Asian startup scene, she is now back in the UK. Writing from Sussex, she covers everything from nature restoration to data science for a beautiful array of magazines and websites.
Explore More See all news
Back to top