Amazon CEO Andy Jassy addressed employee concerns on Tuesday, clarifying that the company’s new mandate for employees to work in-office five days a week starting January 2, 2025, is not aimed at forcing attrition or meeting city leaders’ demands.
Jassy explained that the policy, up from the current three-day requirement, is instead focused on reinforcing Amazon’s culture. “This was not a cost play for us. This is very much about our culture and strengthening our culture,” Jassy said during an all-hands meeting, according to a transcript reviewed by Reuters.
The announcement comes amidst frustration from employees who argue the policy is stricter than those of other tech companies and could lower productivity by increasing commute times. Those who do not comply with the mandate will be considered to have “voluntarily resigned” and will lose access to company systems.
Speculation over the policy’s intent was intensified by a statement from Matt Garman, CEO of Amazon Web Services (AWS), last month, suggesting that employees not willing to adhere to the in-office requirement could seek jobs elsewhere. Garman also stated that nine out of ten employees he had spoken with were supportive of the change.
In response to Garman’s comments, over 500 Amazon employees signed a letter urging the company to reconsider the mandate, emphasizing that Amazon had operated successfully with remote work. The letter also noted that the mandate could disproportionately affect employees with families and those with medical conditions. The letter stated, “We were appalled to hear the non-data-driven explanation you gave for Amazon imposing a five-day in-office mandate.”
Amazon has attempted to ease the transition by providing commuter benefits and subsidized parking. Jassy acknowledged the adjustment, saying, “I understand that for a lot of people, and we’re going to be working through that adjustment together.”
Amazon recently reported a record $15.3 billion profit for the third quarter and is anticipating a robust holiday season. However, the policy has generated significant backlash among employees, highlighting the ongoing tensions surrounding return-to-office mandates in the post-pandemic workplace.
