Amazon CEO Andy Jassy addressed employees at an all-hands meeting, pushing back on claims that the company’s upcoming five-day in-office mandate serves as a “backdoor layoff” strategy.
According to a transcript obtained by Reuters and CNBC, Jassy said, “This is very much about our culture and strengthening our culture,” emphasizing that the decision wasn’t motivated by cost-saving measures or agreements with city officials.
In September, Amazon announced that starting January 2, 2025, employees would be required to work in the office full time, moving away from the previous policy of three in-office days per week. This shift sparked significant backlash among staff, with some suggesting that the mandate is designed to force attrition.
Amazon has implemented multiple rounds of layoffs, cutting over 27,000 jobs since early 2022, leading to further speculation about the policy’s intentions.
Jassy refuted the theories, saying, “A number of people I’ve seen theorize that the reason we were doing this is a backdoor layoff or we made some sort of deal with the city, or cities… I can tell you both of those are not true.” He reiterated that the decision aims to enhance collaboration and cultural connection, which he believes are essential for Amazon’s continued success. “This was not a cost play for us,” he added.
Employee Pushback Grows
The office mandate has stirred unrest among Amazon employees, particularly those at Amazon Web Services (AWS). AWS head Matt Garman’s recent comments defending the mandate, including his assertion that “there are other companies around” for those unwilling to comply, fueled further discontent.
Reports indicate that hundreds of AWS staffers signed a letter criticizing Garman and challenging the company’s stance on flexible work. “Remote and flexible work is an opportunity for Amazon to take the lead, not a threat,” the letter said.
Employees have raised various concerns about the impact of the in-office requirement. One staffer detailed being denied a disability accommodation, while another described the burden of commuting over 200 miles. Reports indicate that 37,000 Amazon workers have joined an internal Slack channel advocating for remote work and sharing grievances.
Jassy acknowledged the transition would be challenging for many, saying, “I understand that for a lot of people and we’re gonna be working through that adjustment together.” Despite employee frustrations, Amazon maintains that the in-office mandate aligns with its vision for fostering innovation and delivering value to customers.
