Amazon’s Five-Day Office Rule Not a Cost-Cutting Measure, Says CEO

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Amazon CEO Andy Jassy addressed employees at a recent all-hands meeting, clarifying that the company’s upcoming five-day in-office policy is not intended to prompt resignations or satisfy city leaders, as some employees have speculated.

The new policy, which will require employees to work from Amazon offices daily starting next year—up from the current three days per week—has sparked concerns among workers. Many argue it’s more restrictive than policies at other tech companies and will negatively impact productivity due to long commutes.

Employees who consistently fail to follow the policy are informed that they will be “voluntarily resigning” and will be denied access to company systems.

Jassy addressed the rumors directly, stating, “This was not a cost play for us. This is very much about our culture and strengthening our culture.” He denied any hidden motives like a “backdoor layoff” or agreements with cities.

The move has met with resistance, especially after Matt Garman, the head of Amazon Web Services, suggested employees could leave if they weren’t on board with the mandate. His remarks prompted a response from over 500 employees, who submitted a letter expressing their disappointment and highlighting the challenges the policy could create for those with families or health concerns.

In response, Amazon emphasized that it is offering commuter benefits and subsidized parking to support the transition back to in-office work.

Jassy acknowledged the adjustment might be challenging for many employees, stating, “We’re going to be working through that adjustment together.” He also noted that an internal system allowing employees to report unnecessary bureaucracy had received around 500 messages, of which action was taken on about 150, though he provided no specifics.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters all rights reserved by the original author.