Amazon is looking for methods to cut its staff beyond the large layoffs currently in progress and is offering voluntary buyouts to some employees within the corporation
According to internal corporate records seen by CNBC, some divisions, including human resources and employee services, received “voluntary layoff” offers on Tuesday and Wednesday.
According to the documents, Amazon will provide employees a “lump-sum” severance package that is equal to three months’ worth of pay plus one week’s compensation for every six months of employment. Employees’ insurance will be maintained through the end of December, and they will also get a weekly stipend for a period of 12 weeks that can be applied to COBRA rates.
The documents stated that employees have until Nov. 29 to resign and until Dec. 5 to withdraw their application if they change their minds. Employees will receive word from Amazon the following month that their resignation has been accepted and that their last day of work will be December 23.
The documents stated that the volunteer severance programme is a “first step” to reorganise businesses within Amazon, implying that the divisions may experience layoffs soon.
As CEO Andy Jassy intensifies efforts to contain expenses throughout the company, Amazon is urging employees to sign up for buyouts.
As it prepares to face a deteriorating economy and deal with a workforce that grew during the pandemic, Amazon started this week what is anticipated to be the largest workforce reductions in its 28-year existence.
Dave Limp, head of hardware at Amazon, announced on Wednesday that the business had started letting go of workers in its devices and hardware division. Employees of Amazon’s cloud gaming units Luna and Alexa appear to have been most impacted by the job losses thus far.
According to a person familiar with the situation, Amazon may remove up to 10,000 employees, though the exact figure is uncertain because choices are being made business by business.
Some Amazon employees have expressed frustration over the ongoing rolling layoff announcements because the company has not yet issued a notice to all employees about the job losses, a person with knowledge of the situation previously told CNBC.