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Amazon looks at new way to cut workforce through voluntary buyouts
https://www.whatjobs.com/news/usa/us-business-news/amazon-looks-at-new-way-to-cut-workforce-through-voluntary-buyouts
By Nithya Bose in Amazon News, posted November 17, 2022
Amazon is giving voluntary buyouts to select workers in a move to cut staff away from the mass layoffs currently being carried out.
Some units, like human resources and employee services, have reportedly received "voluntary severance" offers on Tuesday and Wednesday.
Amazon will offer employees a "lump-sum" severance payment equivalent to three months' salary in return for leaving the organization.
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They are also entitled to one week's pay for every six months they worked with the firm.
Staff will also get a weekly stipend for 12 weeks to cover COBRA health insurance premiums, and their insurance will be extended until the end of December.
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Employees can resign until Tuesday, November 29.
If they change their minds, they have until Monday, December 5 to rescind their application.
Amazon will then notify workers their resignation has been accepted and that their final day of work will be December 23.
The volunteer severance program is a "first step" in its realignment of operations, implying that layoffs may occur in the near future.
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It is pushing staff to sign up for buyouts as CEO Andy Jassy accelerates attempts to cut expenses across the board.
Amazon began what is likely to be the greatest staff reductions in its 28-year history this week.
It has a deteriorating economy and a workforce that swelled during the pandemic.
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Amazon's hardware director, Dave Limp, announced the business has begun laying people off in its devices and hardware division.
So far, the cuts appear to have had a considerable impact on workers in its Alexa and Luna cloud gaming units.
The Seattle giant is expected to cut up to 10,000 jobs, though the exact number is unknown.
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Reliable sources said this is because decisions are made on a business-by-business basis.
Some Amazon employees have expressed dissatisfaction with the company's continuous layoffs.
A person close to the situation voiced concern since the corporation has yet to issue a companywide memo addressing the job losses.
Source: CNBC
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