Amazon's New In-Office Policy

By Greg Bensinger

(Reuters) – Amazon CEO Andy Jassy addressed employees at an all-hands meeting on Tuesday, clarifying that the company's decision to require in-office attendance five days a week is not aimed at forcing attrition or satisfying city officials, as many have speculated.

This new policy, which will take effect next year and increases the current requirement from three days a week, has sparked concern among employees. They argue that it is more stringent than policies at other tech companies and could reduce efficiency due to commuting times.

According to Jassy, employees who consistently fail to comply with the new mandate will be considered to have "voluntarily resigned" and will be locked out of their company accounts.

Jassy refuted claims that the policy is a hidden layoff strategy or a deal with city leaders, stating, "I can tell you both of those are not true. You know, this was not a cost play for us. This is very much about our culture and strengthening our culture."

An Amazon spokesperson declined to comment further.

Last month, Matt Garman, CEO of Amazon Web Services, suggested that those unwilling to comply could seek employment elsewhere, claiming that 90% of employees he spoke with supported the new requirement. This led to a letter from over 500 employees urging Garman to reconsider, emphasizing that the company had functioned effectively with a fully remote workforce and expressing concern about the new policy's impact on employees with families or medical issues.

The employees voiced their discontent, stating, "We were appalled to hear the non-data-driven explanation you gave for Amazon imposing a five-day in-office mandate."

In response, Amazon announced it would offer commuter benefits and subsidized parking to assist with the transition.

Jassy acknowledged the challenges of adjusting to the new policy, stating, "It is an adjustment… and we're going to be working through that adjustment together."

He also mentioned that an internal reporting system for addressing excess bureaucracy is functioning well, with the company acting on approximately 150 of 500 reported emails concerning bureaucracy issues.

"I hate bureaucracy," Jassy noted. "One of the reasons I'm still at this company is because it's not a political, bureaucratic place."

Despite these controversies, Amazon reported a record third-quarter profit of $15.3 billion last month and anticipates a strong holiday quarter. The five-day in-office requirement will start on January 2.