Amazon CEO Denies In-Office Mandate Is A 'Backdoor Layoff' Plan
Despite internal resistance, Andy Jassy maintained the decision was based on fostering company culture rather than cutting costs
Amazon CEO Andy Jassy addressed concerns at a company-wide meeting on 5 November regarding the controversial plan requiring employees to return to the office five days a week starting in 2025. Dismissing rumors that the policy was a covert strategy for layoffs or the result of deals with city officials, Jassy stated, "This is very much about our culture and strengthening our culture."
The plan, which escalates the current three-day in-office requirement, has sparked discontent among employees, who argue it’s more stringent than other tech firms and will hamper productivity due to increased commuting. Non-compliant employees face "voluntary resignation" and restricted access to company systems.
Despite internal resistance, including a letter signed by over 500 employees urging a policy revision, Jassy maintained the decision was based on fostering company culture rather than cutting costs. "We’re going to work through this adjustment together," he reassured.
In October, Matt Garman, CEO of Amazon Web Services, controversially suggested that non-compliant employees could seek employment elsewhere. This prompted backlash, highlighting concerns over the impact on workers with families or health issues.
Amazon has introduced commuter benefits and subsidised parking to ease the transition. As part of an ongoing effort to reduce bureaucracy, Jassy reported action on 150 of approximately 500 internal complaints about excessive red tape. Amazon's push for a stricter office return policy comes on the heels of a record-breaking third-quarter profit of $15.3 billion, with expectations for a robust holiday season.
