Amazon Reportedly Adopts Subtle Strategy to Reduce Workforce
Amazon.com Inc (NASDAQ: AMZN) has reportedly been implementing a strategy known as “quiet firing” to reduce its workforce. This tactic involves creating work conditions that encourage employees to leave voluntarily, a method that has recently come to light following the company’s significant layoffs in the past year.
Insiders claim that Amazon subtly pushes employees out by assigning more workers to the lowest performance brackets, enforcing strict office return policies, and sometimes not allocating any work to them. These tactics are aimed at quietly reducing the workforce, avoiding the usual disruptions caused by direct layoffs.
Former Amazon Web Services senior employee Justin Garrison referred to his departure as a “silent sacking,” stating, “Silent sacking is how Amazon is going to reduce operational costs without negatively affecting the stock price. Layoffs make negative news which lowers the stock. Ultimately it goes up when earnings show lower overhead, but it affects internal morale and trust, which is destroying the company from the inside.”
Amazon, however, denies these allegations. A spokesperson for the company stated, “These anonymous anecdotes about performance management are inaccurate,” adding, “While that may be a difficult experience for the employee involved, it’s hardly unusual for a company of our size, and would be expected from any business that’s focused on consistently delivering for its customers.”
At the core of Amazon’s alleged “quiet firing” strategy is the increase in performance improvement plans, which are part of its approach to manage “unregretted attrition.” Managers have reportedly been instructed to place more employees on these plans. This strategy raises concerns about losing valuable experience and knowledge, particularly in critical areas such as cloud infrastructure services.
Despite these challenges, Amazon continues to be viewed as a well-equipped and desirable workplace. The company has maintained its position as a leader in the industry, attracting top talent and consistently delivering for customers.
It’s important to note that this article was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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