Last year, only a third of Amazon’s new hires stayed with the company for more than 90 days before quitting, being fired, or getting laid off, according to leaked documents obtained by Engadget. The report is the latest indication that Amazon is having serious issues retaining employees, and it reveals the company’s estimate that its attrition rate costs it almost $8 billion a year across its global consumer field operations team.
The report, which is based off internal research papers, slide decks, and spreadsheets from Amazon, claims that workers are twice as likely to leave by choice, rather than because they were laid off or fired. It also says that the issue is widespread throughout the company, not just with warehouse workers; from entry level roles all the way up to vice presidents, the lowest attrition rate for one of the company’s 10 tiers of employees was almost 70 percent, with the highest reaching a staggering 81.3 percent.
The report doesn’t specify which class of employees had the highest attrition rate, but it’s well known that Amazon’s warehouses and other fulfillment facilities have more turnover than the rest of the industry. According to a report from The New York Times, around three percent of the company’s hourly employees left each week, and leaked internal memos obtained by Recode show that the company is worried about literally running out of people who’d be willing to work for it within the next few years (and even sooner, in some areas).
The attrition issue is top to bottom
But while some Amazon warehouse workers have been making it very obvious why people don’t necessarily want to stay in those roles, Engadget notes that managers are also leaving thanks to issues with “development and promotions,” or otherwise advancing their careers at Amazon. Some of this may come down to the training programs the company provides, which are reportedly important for moving up at Amazon, but are seemingly run in a disorganized and potentially wasteful manner, according to the documents cited by the report. Amazon didn’t immediately respond to The Verge’s request for comment on Engadget’s report.
While Amazon definitely seems to have issues with people leaving, it’s also faced criticism for how it manages layoffs as well. Last year, reports noted that Amazon’s goal is to filter out the bottom 6 percent of employees, and that it didn’t necessarily let employees who were at risk of losing their jobs know so they could actively work on improving their performance. In the past, there were also concerns about the role of automation in the company’s process for tracking warehouse employees’ performance, and firing them if they failed to meet up to the company’s strenuous standards.
As an industry expert with a deep understanding of workforce dynamics and employee retention issues, I can shed light on the challenges faced by Amazon in retaining its workforce, as outlined in the provided article.
The leaked documents obtained by Engadget paint a concerning picture of Amazon's employee retention struggles. Last year, only a third of new hires at Amazon remained with the company for more than 90 days, leading to significant financial implications, with an estimated cost of almost $8 billion annually across its global consumer field operations team.
One key revelation from the report is that workers are twice as likely to leave voluntarily rather than being laid off or fired. This attrition issue spans the entire organizational hierarchy, affecting employees from entry-level positions to vice presidents. The attrition rates vary among the company's 10 tiers of employees, with the lowest rate at almost 70 percent and the highest at a staggering 81.3 percent.
It's noteworthy that the attrition problem extends beyond warehouse workers, impacting managers as well. Managers are reportedly leaving due to issues related to "development and promotions," indicating challenges in career advancement within Amazon. The training programs, crucial for career progression, are highlighted as potentially disorganized and wasteful in the leaked documents.
The article also touches on Amazon's approach to managing layoffs, where the company aims to filter out the bottom 6 percent of employees. However, concerns have been raised about the lack of transparency in notifying at-risk employees, preventing them from actively improving their performance. Additionally, there have been past concerns about the role of automation in monitoring warehouse employees' performance and the potential use of automation in the termination process.
This comprehensive analysis underscores the multifaceted nature of Amazon's employee retention challenges, affecting various levels of the workforce and raising questions about the company's internal processes, training programs, and communication strategies.
FAQs
Many Amazon employees received deadlines for starting to work in offices and the uptick in departures may be related to teams nearing those various deadlines.
How long do most people stay at Amazon? ›
Compensation and benefits are decent, if you stick around long enough. There is a reason why on average, people only last a year.
Does Amazon still pay people to quit? ›
Bezos's philosophy was not without risks, yet it was initiatives like these that continually positioned Amazon as a leader in not just market share but also in its progressive approach to workplace dynamics. In 2022, Amazon suspended the Pay to Quit program.
Why is Amazon sacking employees? ›
Most recently, Amazon announced another round of layoffs, this time affecting hundreds of employees in its cloud computing arm, AWS. The move reportedly follows the company's ongoing strategic realignment towards the key focus areas as it undergoes significant restructuring.
How long does the average Amazon worker last? ›
The Inland Empire region of California could reach breaking point by the close of this year, according to the research. The problem is that the average warehouse worker only lasts about eight months with Amazon.
Is Amazon doing layoffs in 2024? ›
Last year's job cuts weren't the end of layoffs. Further reductions have begun in 2024. Companies like Tesla, Google, Microsoft, Nike, and Amazon have announced plans for cuts this year. See the full list of corporations reducing their worker numbers in 2024.
Is Amazon a stressful place to work? ›
Working at Amazon at first is easy for a beginner, but as you progressed in the work environment the stress level of your daily task will start to increase and there are times that the managers or HR associates will find any other way to just terminate you, or find any other excuse to relief you off your work position.
Are Amazon workers treated well? ›
Amazon warehouse workers are suffering physical injuries and mental stress on the job as a result of the company's extreme focus on speed and pervasive surveillance, according to a study its authors say is the largest nationwide survey of Amazon workers.
Is Amazon good to its employees? ›
Our employees are recognized for their work through compensation and valuable benefits for themselves and their families. With many options, employees can choose the benefits that are most valuable for their personal situation.
Why does Amazon pay $5 000 to quit? ›
Initially inspired by a similar program at Zappos, Amazon adapted the Pay to Quit program within its fulfillment centres, offering employees a financial incentive to leave the company. Bezos mentioned in a letter, "The goal is to encourage folks to take a moment and think about what they really want."
The program, called Pay to Quit, offers Amazon workers who aren't committed to their jobs $2,000 in severance pay in the first year of employment, going up to $5,000 in the fourth year.
What leaves does Amazon pay you for? ›
Leaves of absence
This can include the birth or adoption of a new child, personal reasons, the death of a member of your immediate family, jury/witness duty, military reasons, or other reasons provided under various laws.
Is Amazon unfair to workers? ›
Amazon workers at various sites around the country have been trying to unionize for years, with little to show for it. Many have accused Amazon of using illegal tactics to discourage workers from supporting unions — more than 240 such charges have been filed with the labor board, workers said.
What is quiet firing? ›
Quiet firing is when management creates non-ideal work conditions to make an underperforming employee quit. Examples of these tactics include pushing off promotions and isolating employees.
Does Amazon have a severance package? ›
"We are working to support those who are affected and trying to help them find new roles on teams that have a need; and in cases where that's not possible, we are offering packages that include a separation payment, transitional health insurance benefits and external job placement support."
Why is Amazon's turnover rate so high? ›
The report attributes Amazon's turnover rate to unsustainable work expectations, high injury rates, monitoring systems that often lead to termination and discipline, low chances of promotions, and more.
Why is Amazon attrition so high? ›
Attrition Drivers: According to internal documents, a common cause of attrition among AWS leaders is the pursuit of career advancement and promotional opportunities. Interestingly, Amazon has witnessed a growing trend of “boomerang employees” over time.
Why is Amazon having massive layoffs? ›
The Alphabet Workers Union says Google's new round of layoffs in 2024 have affected more than 1,000 employees. Amazon has taken a similar stance in its 2024 layoffs, saying the cuts are due to organizational changes with the goal of sustainable long-term growth.
What are the problems with Amazon workers? ›
OSHA found that Amazon warehouse workers were subject to a significant risk of low back injuries and musculoskeletal disorders due to the high frequency at which workers were required to lift packages and heavy items, work long hours, and often awkwardly bend and twist to maneuver products.
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