Amazon's Rigid Return-To-Office Policy Triggers Employee Exodus: Report

An increase in resignations at Amazon Inc. AMZN, especially in its cloud division, Amazon Web Services (AWS), is reportedly linked to dissatisfaction with the company’s inflexible return-to-office (RTO) policy.

What Happened: The number of resignations at AWS has reportedly surged over the past week. Employees are expressing their discontent with Amazon’s RTO policy in their resignation notes shared on the company’s internal Slack channel, reported Business Insider.

Amazon’s “return-to-hub” policy, enforced earlier in 2023, mandates staff to work from their assigned team “hub” a minimum of three days a week. The spike in resignations appears to coincide with teams nearing their RTO deadlines.

An Amazon spokesperson refuted the claims, stating that attrition rates, including AWS, are the lowest they have seen in recent years and that the RTO policy has fostered increased energy and collaboration among employees.

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However, departing employees have criticized the company’s management for its lack of regard for their concerns about the RTO policy and mass layoffs earlier this year. Business Insider’s report suggests that high employee attrition is a challenge for Amazon’s cloud business, along with slowing growth and missed sales targets.

Why It Matters: Before the recent wave of resignations, Amazon’s RTO policy had been a source of contention. In August 2023, an Amazon employee responded to the company’s RTO policy with a series of satirical “Leadership Principles for RTO.”

In November 2023, Amazon altered its promotion eligibility rules, tying adherence to the RTO policy to the potential for advancement. Non-compliance could potentially stall promotions, necessitating approval from a vice president.

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