Amazon is Using a Buyout Scheme to Reduce Staff Numbers

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Amazon is looking for methods to reduce its personnel beyond the large layoffs that are already in progress, therefore the business is giving voluntary buyouts to certain of its workers who work inside the company.

According to internal corporate records that were accessed by CNBC, offers of “voluntary severance” were made available to employees in certain departments on Tuesday and Wednesday. These departments included human resources and employee services.

According to the papers, Amazon would compensate workers with a “lump-sum” severance package that is equivalent to three months of pay, in addition to one week of compensation for every six months of service at the firm, in return for the employees’ decision to leave the company. Employees will also be provided a weekly stipend for a period of twelve weeks, which may be used to offset the cost of COBRA costs. Additionally, the employees’ insurance coverage will be maintained until the end of the month.

According to the paperwork, workers have until November 29 to tender their resignations, and they have until December 5 to withdraw their applications if they have a change of heart. Employees will be informed the following month that their resignation has been accepted by Amazon and that their final day of work will be on December 23.

According to the papers, the voluntary severance program is the “initial stage” in realigning the companies that are part of Amazon. This indicates that the divisions may be subject to layoffs in the not too distant future.

Amazon CEO Andy Jassy is stepping up efforts to cut expenses throughout the firm, and one of the ways he is doing this is by pushing staff to sign up for buyouts.

As the company confronts a deteriorating economy and comes to terms with a staff that grew during the epidemic, Amazon began what is believed to be the greatest labor reduction in its 28-year existence this week.

Dave Limp, who is in charge of Amazon’s hardware division, said on Wednesday that the firm has started firing workers working in its devices and hardware segment. It would seem that the job layoffs have had a substantial effect on staff working in Amazon’s Alexa and Luna cloud gaming departments so far.

According to a source who is acquainted with the situation, Amazon is likely to cut as many as 10,000 positions, but the exact figure is unknown since the choices are being made on a business-by-business basis. Nevertheless, the overall number is believed to be in the thousands.

According to a source familiar with the situation who spoke with CNBC in the past, the rolling layoff announcements, which are still ongoing, have left some Amazon employees frustrated because the company has not yet sent out a companywide notice addressing the job cuts. This information was provided to CNBC in the past.

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