Amazon HR document reveals a spike in employees put on PIPs during a time of record layoffs
An official Amazon HR document has revealed a significant increase in the number of employees put on Performance Improvement Plans (PIPs) from spring 2022 through early 2023. This spike in PIPs occurred during a period when Amazon was conducting the largest layoffs in its history, according to the document obtained by Business Insider.
In April 2022, Amazon placed just under 2,000 employees into the Focus program, the initial stage of the company’s PIP process. By the end of the year, more than 3,300 employees were entering the Focus program each month. In January 2023, these numbers saw a further increase, as indicated by the document.
The Pivot phase of Amazon’s PIP system also experienced a surge in new monthly entries during this period, more than doubling in numbers. The document, prepared by Amazon’s “PXT” group, which stands for People Experience and Technology, highlighted these trends.
The increase in PIPs coincided with 27,000 layoffs announced by Amazon between November 2022 and March 2023. While layoffs are typically due to financial reasons such as downsizing, PIPs are used when employees are not meeting performance standards and may face termination if they do not improve.
Amazon spokesperson Margaret Callahan confirmed the authenticity of the document but noted that the data reporting mechanisms had since been updated. She emphasized that any past reductions in the workforce were not linked to the PIP process.
The document also raised concerns among employees about “quiet firing,” a tactic where jobs are discreetly eliminated to reduce severance costs and minimize public attention. Some employees viewed the increase in PIPs as part of this strategy.
Overall, the data from the document shed light on Amazon’s performance management practices and the challenges faced by employees undergoing PIPs during a period of significant organizational changes.
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