Report claims Amazon has initiated a voluntary buyout program. CNBC reports that human resources and employee services are among the divisions to receive the proposed buyout offers.
Report Claims Amazon Has Initiated Voluntary Buyout Program
CNBC on Wednesday reported that amazon is now offering voluntary buyouts to most of its employees in a bid to cut costs beyond the layoffs that it initiated this week.
The tech and e-commerce company offered ‘voluntary severance packages on Tuesday and Wednesday as it continue in its quest to cut jobs and issue substantial layoffs across the company. Employee services and human resources are among the divisions of the company to receive buyout offers.
Amazon Will Provide Employees with a Severance Payment Package
Amazon will provide employees that leave the company voluntarily with a severance payment that is equal to three months of pay alongside one week of salary for every six months of tenure, CNBC reports, also citing internal documents.
The news of buyouts is coming in the midst of massive layoffs that have been confirmed in a blog post on Wednesday by the company, after days of rumors about job cuts.
What Amazon Has To Say about the New Development
“We notified impacted employees yesterday, and will continue to work closely with each individual to provide support, including assisting in finding new roles,” Dave Lump, senior vice president of Devices and Services at amazon in the post said. “In cases where employees cannot find a new role within the company, we will support the transition with a package that includes a separation payment, transitional benefits, and external job placement support.”
Amazon Did Not Drop Any Details as To the Number of Jobs That Were Cut
Amazon did not drop any detail as to the number of jobs that were cut, but the new york times and the wall street journal however have both reported that the reported cuts affected around 10,000 corporate employees and not warehouse workers during its busiest time of the year, and if that number is true, the times noted that it would be the biggest layoff in the history of the company.
Limp stated that amazon initially mentioned economic problems back in July in a company town hall. He said, “After a deep set of reviews, we recently decided to consolidate some teams and programs.”
A different corporate statement pointed to the “current macro-economic environment (as well as several years of rapid hiring).”
The company refused a request for more information although it did say that the reported cuts affected corporate and tech staff and not operations workers.
Amazon Saw Improvements Over Earlier In 2022
And while the third quarter earnings of amazon saw improvements over earlier in 2022, overall profits on the other hand were below expectations. And as a result of this, the company has been cutting back in a couple of areas even before the layoffs this week.