Amazon, $AMZN, employees fear that the company is using 'quiet firing' tactics and a 'brain drain'
Amazon, $AMZN, employees fear that the company is using 'quiet firing' tactics and a 'brain drain,' per BI.
Since late 2022, Amazon has reportedly laid off over 27,000 employees, and concerns are emerging about the company employing a strategy known as "quiet firing" to trim its workforce. In this context, "quiet firing" involves creating conditions that prompt employees to resign. Sources within Amazon indicate that the company is employing various tactics, such as assigning a higher number of employees the lowest performance ratings, implementing a more stringent return-to-office policy, or withholding work assignments, all aimed at effectively pushing employees out of the company. The information is based on insights from eight individuals who spoke to Business Insider anonymously due to lack of authorization to speak to the press.
While Amazon continues to carry out layoffs, particularly in departments like Twitch, Prime Video, Audible, and Amazon Pay, the use of "quiet firing" tactics allows the company to discreetly cut labor costs without the public attention associated with traditional layoff announcements.
Former senior Amazon Web Services employee, Justin Garrison, who recently left the company, referred to the process as "silent sacking." Garrison highlighted that this method allows Amazon to reduce operational costs without negatively impacting its stock price, as layoffs tend to generate negative news. He expressed concern that while it may boost earnings in the short term, it harms internal morale and trust, eroding the company from within.
Amazon's spokesperson generally disputed claims of performance management changes, attributing the return-to-office mandate to long-term benefits for customers, business, and culture.
One of the tactics reportedly used by Amazon is the "unregretted attrition" (URA) target, specifying the desired number of employees to be lost through attrition. This target has allegedly increased on some teams, with managers reportedly being instructed to target a percentage of employees for performance improvement plans, in addition to the layoffs. The effectiveness and application of URA have been a point of controversy, and subsidiaries like Audible and Twitch are reportedly facing increased pressure to place a fixed number of employees on such plans.
Some employees believe that Amazon's strict return-to-office mandate is also part of the "quiet firing" plan. The company began enforcing a "return-to-hub" policy in July, requiring most staff to work from central hubs assigned to their teams instead of any office nearest to their current city. Failure to comply is interpreted as a "voluntary resignation," and non-complian