Amazon’s new return-to-office policy has sparked concerns that it may be a “backdoor layoff” strategy for the company. By mandating employees work in person five days a week starting in 2025, Amazon is pushing some workers out and reducing costs.
Future-of-work experts say Amazon likely knows this will happen, as dissatisfied workers are already applying to new positions. This means the company won’t have to go through formal layoffs, but it may come at the expense of talent and innovation.
Stanford economist Nicholas Bloom said Amazon’s goal is to control costs by cutting headcount and technology investments. CEO Andy Jassy called for a 15% reduction in managers by the end of 2025, which could lead to employee attrition.
A recent survey found that 73% of Amazon employees considered quitting their jobs due to the mandate. Experts warn that this policy may not be as popular among workers as claimed. Brian Elliott, future-of-work advisor, said “the vast majority of people want flexibility” and those without it are more likely to leave.
Other companies have already faced similar challenges with RTO policies. A study by BambooHR found that executives hoped employees would voluntarily leave their companies after implementing such a policy. The same concern applies to Amazon, where talent may be lost due to the company’s shift towards in-person work.
Source: https://fortune.com/article/amazon-return-to-office-rto-ceo-andy-jassy-layoffs