Amazon CEO Andy Jassy addressed employee concerns regarding the company's return-to-office (RTO) mandate, dismissing claims that the policy is a tactic for "quiet firing" or influenced by deals with cities seeking economic boosts. The comments were made during an all-hands meeting on Tuesday, as reported by Business Insider.
Jassy clarified that Amazon's decision to enforce in-office work is aimed at strengthening company culture rather than cutting costs. He stated, "This was not a cost play for us. This is very much about our culture and strengthening our culture," noting that only the Seattle headquarters was informed in advance of the RTO mandate. In September, Amazon announced that corporate employees would be required to work on-site five days a week starting January 2024, a move that drew criticism from many employees, with some speculating it might be a way to reduce headcount indirectly.
Amazon Web Services CEO Matt Garman recently indicated that most employees he spoke with were supportive of the change. However, the company has faced significant pushback, with over 500 employees signing an internal petition protesting the RTO mandate, highlighting clear discontent among some of the workforce.
Jassy reiterated his belief that in-person collaboration fosters innovation and builds a stronger work culture. He emphasised that the tech landscape, particularly in fields like artificial intelligence, requires companies to adapt quickly to remain competitive. "We have a chance to build the most remarkable company in the history of business," Jassy told employees, stressing that the physical workspace can enhance Amazon's agility and innovation capabilities. He also mentioned that exceptions would be made for employees dealing with personal needs, such as illness or home repairs.
Another topic at the meeting was Amazon's decision to reduce management layers by increasing the ratio of individual contributors to managers by 15% by early 2025. This change, Jassy explained, is intended to speed up decision-making and reduce bureaucracy. Amazon's rapid hiring during the pandemic resulted in additional management layers that slowed down routine processes.
To tackle bureaucracy directly, Amazon introduced a "Bureaucracy Mailbox" last month, allowing employees to suggest improvements to streamline operations. Jassy shared that the company received over 500 emails and acted on more than 150 suggestions. "The reality is that the S team and I hate bureaucracy," he stated, referring to Amazon's top leadership team. Jassy emphasised that Amazon's culture still values a dynamic, non-political work environment, which he hopes to preserve despite the company's growth.
Amazon's RTO policy and management restructuring highlight its focus on adapting to a fast-evolving tech industry while aiming to foster a more streamlined, innovation-focused culture.