Amazon’s CEO Denies That the Company’s Return-to-Office Policy Is a ‘Backdoor Layoff’

In mid-September, Amazon CEO Andy Jassy made an important announcement regarding remote work. Starting in January 2025, all employees will be required to return to the office five days a week.

The decision surprised many employees, who quickly speculated whether it was a covert layoff strategy intended to streamline the organization. Others hypothesized that it was a response to some local mayors offering tax incentives to bring employees back to the office.

According to sources consulted by Reuters, Jassy addressed these concerns during an internal staff meeting on Tuesday. He reportedly said, “A number of people I’ve seen theorized that the reason we were doing this [return-to-office mandate] is, it’s a backdoor layoff, or we made some sort of deal with city or cities.” He added, “I can tell you both of those are not true.”

Best for Amazon

In his September statement, Andy Jassy argued that the decision to return to the office was the best for the company. The decision is part of a long-term strategy aimed at improving productivity and fostering internal cohesion among teams, which executives say benefit from proximity in order to embody some of Amazon’s Leadership Principles that have contributed to the company’s success.

A few weeks later, Mark Garman, CEO of Amazon Web Services, echoed this sentiment. In a meeting with AWS staff, he pointed out, “[At Amazon], we want to be in an environment where we’re working together.” He also said that this collaborative environment is incredibly important for the company’s innovation and culture.

Following the statements from Amazon’s top executives, many employees expressed their concerns about the return-to-office policy’s lack of flexibility. More than 500 employees signed a letter addressed to Garman. In the letter obtained by Business Insider, they criticized the AWS CEO’s stance, particularly his remark inviting anyone who disagrees with the policy to resign.

The employees wrote, “By rigidly mandating a 5-day in-office culture and telling employees who cannot or will not contribute to the company’s mission in this specific way that ‘there are other companies around,’ you are silencing critical perspectives and damaging our culture and our future in doing so.”

They added, “Moreover, this does not uphold Amazon’s espoused ‘Strive to be Earth’s Best Employer’ leadership principle, especially for select and protected groups who have sought a safer, more inclusive, and healthier work environment and are disproportionately impacted by these policies.”

A Progressive Adaptation Process

In response to the concerns expressed by Amazon staff in the letter, Jassy adopted a more conciliatory tone. During Tuesday’s meeting with employees, he said, “It is an adjustment. I understand that for a lot of people, and we’re going to be working through that adjustment together.”

According to CNBC, an Amazon spokesperson informed the staff that the company has already begun implementing measures to make returning to the office less burdensome. These measures include a variety of benefits and commuter services that differ by location. Jassy emphasized, “This was not a cost play for us. This is very much about our culture and strengthening our culture.”

Some of the benefits being offered to employees include free transportation vouchers, subsidized parking, reimbursable public transportation costs, subsidized ridesharing options, and assistance with purchasing bicycles.

Image | Alesia Kazantceva

Related | Amazon Planned to Connect Its New Data Center to a Nuclear Power Plant. Regulators Had Other Plans