Amazon.com Inc AMZN is reportedly adopting a subtle strategy to reduce its workforce.
This approach, known as "quiet firing," involves creating work conditions that encourage employees to leave voluntarily, a tactic that has 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.
A report by Business Insider suggested that 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 told Business Insider that his departure was a "silent sacking." "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," Garrison said.
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However, a spokesperson for Amazon countered these allegations and told the outlet, "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 heart of Amazon's alleged "quiet firing" is the increase in performance improvement plans, part of its strategy to manage "unregretted attrition."
The outlet reported that managers have been instructed to place more employees on these plans. This strategy raises concerns about losing valuable experience and knowledge, especially in critical areas like cloud infrastructure services.
Despite these challenges, Amazon has maintained its position as a well-equipped and desirable workplace.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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