After laying off 10,000 corporate and technology employees earlier this week, Amazon is stepping up its efforts to reduce headcount further. ✂️
This time they’re using a “voluntary severance” program to incentivize employees to resign by November 29th. And if they change their mind, they’ll have until December 5th to withdraw their application. How about that for an awkward conversation?
The package includes a “lump-sum” payment of three months’ pay plus one week of salary for every six years with the company. Their insurance will continue through the end of December, and they’ll also receive a weekly stipend for twelve weeks to help offset COBRA premiums. 💰
Meanwhile, a memo from CEO Andy Jassy warned that the company will continue to lay off employees in 2023. However, it won’t know the extent of further cuts until after the company completes its annual operating planning process.
What is clear is that Amazon and other tech giants remain in slim-down mode. And how the holiday-focused fourth quarter shakes out will likely inform its decisions about the year ahead. 📆