Bloomberg News reported on the 19th (local time) that Amazon, the world's largest e-commerce company, has ordered some employees to relocate to major hubs, including its main office in Seattle, which has led to increased internal backlash.
Bloomberg cited anonymous sources saying that Amazon has been notifying employees individually through recent personal meetings to move near its major office locations in Seattle, Arlington, Virginia, and Washington, D.C.
Employees must make a decision within 30 days, and if they do not begin the relocation process within 60 days, they will have to resign. In the case of resignation, no compensation will be provided.
This relocation order is an additional measure following the end of remote work this year. Andy Jassy, Amazon’s Chief Executive Officer (CEO), instructed employees to return to the office five days a week earlier this year, but did not require relocation to specific cities. Until now, employees working remotely from areas far from major hubs could commute to satellite offices in major cities like New York, Boston, and Los Angeles.
However, this time they are being told to move to major hubs where their managers or team members are located. It is expected that the number of employees who have received relocation notices will be in the thousands, as many were hired under the condition of fully remote work during the COVID-19 pandemic.
An Amazon Spokesperson stated, "Most employees can work more energetically when they are in the same space together," but there is an analysis that suggests this is effectively an encouragement for voluntary resignations. CEO Andy Jassy warned in an email sent to employees on the 17th that "the entire office workforce will decrease due to widespread use of AI within the next few years."
Amazon is moving towards cost-cutting measures, such as large-scale investments in AI, and Bloomberg reported that voluntary resignations are a method of workforce reduction that incurs lower expenses than layoffs.