Amazon HR document reveals increase in employees put on PIPs during record layoffs
A recent official Amazon HR document has shed light on a spike in the number of employees being put on Performance Improvement Plans (PIPs) from spring 2022 through early 2023. This increase coincided with a period of significant layoffs within the company.
The document, prepared by Amazon’s “PXT” group, revealed that the number of staff entering the Focus program, the initial stage of Amazon’s PIP process, nearly doubled from just under 2,000 in April 2022 to over 3,300 by the end of the year. The numbers continued to rise in January 2023.
Similarly, the Pivot phase of Amazon’s PIP system saw a significant increase in new monthly entries during the same period. This data was presented in a monthly business-review document from early 2023.
The surge in PIPs occurred alongside Amazon’s announcement of 27,000 layoffs between November 2022 and March 2023. While layoffs are typically due to financial reasons like downsizing, PIPs are used when employees are not meeting performance standards and may be terminated for cause.
Amazon has stated that its performance management process aims to maintain a high performance bar and provide support for employees to improve. The company emphasized that any past reductions in the workforce were not linked to its PIP process.
The document also highlighted concerns among employees about “quiet firing,” where jobs are discreetly eliminated to reduce costs and minimize public attention. This practice is not uncommon in many companies and can help save costs during periods of restructuring.
Overall, the data from the HR document provides insight into Amazon’s approach to managing employee performance during a time of significant organizational changes.