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Home  /  Business  /  Amazon’s attrition costs $8 billion annually according to leaked documents

Amazon’s attrition costs $8 billion annually according to leaked documents

by KS Arpitha
October 19, 2022
in Business
Reading Time: 2 mins read

A recent Engadget report reveals that one-third of the new Amazon workers stay for over three weeks before quitting, being fired, or being laid off. Read to know more about the firm’s high attrition rate.

Leaked documents reveal information on Amazon’s high attrition rate

As per the recent Engadget report, both Amazon workers and managers are leaving the firm or advancing in their careers. However, the report reveals that the firm is facing severe issues with retaining employees. Additionally, a report by The Verge reveals that the firm’s global attrition report was almost $8 billion in the area of consumer field operation.

The report, based on Amazon research papers and spreadsheets claims that workers are more likely to quit their positions rather than be laid or fired. The problem exists across all tiers of the company and is not limited to warehouse employees. However, it did not reveal a specific attrition rate from each tier. A New York Times report mentions that nearly three percent of the firm’s hourly employees quit every week.

What is the problem with Amazon?

The issue first started within Amazon as “development and promotions”. While the firm provides several training programs, reports reveal they are classed in a disorganized and wasteful manner. Amazon is also facing severe problems with its staff leaving and is facing criticism in the management of layings. As per media reports, Amazon was set to remove the bottom six percent of its workers. However, it did not go ahead with the decision since several people left the company.

In the past, there have been concerns about automation in Amazon tracking employee performance. The firm was notorious for firing employees if they were failing to meet the strenuous standards set by Amazon. Now, the company is afraid that there will be a day when there won’t be people willing to work for the company.

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