Sign in

Is Amazon silently laying off employees? 'Silent sacking is a five-phase plan'

John McBride, a former Amazon engineer, suggests the company's return-to-office strategy is economically motivated.

Published on: Sep 19, 2024, 09:48:19 IST
By | Edited by
Share
Share via
  • facebook
  • twitter
  • linkedin
  • whatsapp
Copy link
  • copy link

Software engineer John McBride who used to work with Amazon Web Services (AWS) before quitting said that the tech giant is trying to reduce its workforce using its new work from office mandate. The Colorado-based engineer- who worked with Amazon for a year until June 2023- reflected on company CEO Andy Jassy's announcement of return to office rule and said that it should not have surprised anyone who has been paying attention to how the company has been functioning for years.

The Amazon logo is seen. Ex-AWS engineer John McBride asserts that Amazon's new office policy is part of a strategic five-phase plan to reduce costs and workforce. He highlights how the return-to-office mandate is primarily influenced by economic considerations. (AP)
The Amazon logo is seen. Ex-AWS engineer John McBride asserts that Amazon's new office policy is part of a strategic five-phase plan to reduce costs and workforce. He highlights how the return-to-office mandate is primarily influenced by economic considerations. (AP)

He wrote, “Ultimately, it comes down to taxes and economics.” Talking about Amazon's five phase plan, John McBride said the first phase was laying off 30,000 employees, the second was starting return-to-office mandate and the third is “return to team” where employees had to work from offices where their team was physically located.

Read more: IndiGo CEO Pieter Elbers post on his ‘ghar’ Bharat gets this 1-line reply from Anupam Mittal

He said, “I went into the Denver office near me, a 20-minute commute.” Even John McBride had to move to Seattle as he said that “many, many people left during this phase. This is when I personally left in 2023 because I wouldn’t relocate to Seattle.”

After this was “silent sacking” which “If you managed to somehow stick around this long, your work life would be made incredibly unsatisfying and cumbersome: you'd be left out of in-person meetings, you'd be stiff-armed by management, you wouldn't be given interesting or meaningful work, etc. And finally, Phase 5: death of remote. Everyone must sit at a desk in a physical office where your team is located”, as per John McBride.

Read more: Nitin Gadkari reprimands contractors: ‘Saw the road today, won’t spare you…'

Amazon is trying to increase profit margins "now that spending and books across the economy are very tight. Amazon's strict return-to-office policy isn't just about fostering innovation or collaboration - it's a strategic move driven by macro and micro economics. By consolidating their workforce in physical offices, they're aiming to maximise tax incentives and reduce operational costs," he said.

Read more: How US Federal Reserve's rate cut decision impacts policies around the world

He added, "In the end, Amazon's strict return-to-office policy isn't just about fostering innovation or collaboration - it's a strategic move driven by macro and micro economics. By consolidating their workforce in physical offices, they're aiming to maximize tax incentives and reduce operational costs."

  • HT News Desk
    ABOUT THE AUTHOR
    HT News Desk

    Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More