Amazon is encouraging buyouts among its employees as they look for ways to trim their headcount beyond massive layoffs, CNBC reports. On Tuesday and Wednesday, Amazon sent out “voluntary severance” offers to some departments, including human resources and employee services.
In exchange for leaving the company, Amazon will offer employees a “one-time” severance package equal to three months ‘salary plus one week’s pay for every six months with the company, the filing said. Employees will also receive a weekly stipend for 12 weeks that can be used to offset COBRA premiums, and those who leave will be covered through the end of December. Employees who want to resign have until November 29 and have until December 5 to withdraw their applications if they change their minds, the document said. Amazon will notify employees next month that the resignations have been accepted and that they will need to work until December 23. The voluntary severance plan is a “first step” in Amazon’s efforts to restructure its internal operations, the filing said, indicating that layoffs in these divisions are likely in the near future.
Amazon is encouraging employees to sign severance agreements as CEO Andy Jassy steps up efforts to rein in costs across the company.
This week, Amazon began what is expected to be the biggest layoff in its 28-year history. Amazon hardware chief Dave Limp said Wednesday that the company began laying off employees in its devices and hardware division. Employees at Amazon’s Alexa and Luna cloud gaming divisions have been the most affected by the cuts so far.
The ongoing rotation of layoffs announcements has rattled some employees inside Amazon, according to a person familiar with the matter, because the company hasn’t sent out company-wide notices addressing the layoffs.