After Amazon announced layoffs across functions, its India arm started urging its employees to quit voluntarily by sending out a voluntary separation programme (VSP). It told employees that eligible employees will have the opportunity to resign voluntarily from employment in exchange for the VSP benefits. The Union labour ministry has sent a notice to Amazon over this VSP and asked to provide details related to it.
According to the VSP document shared by the e-commerce major, “This communication is to inform you that Amazon is implementing a Voluntary Separation Program (VSP) which is temporarily available to eligible employees within Amazon’s AET organization. Pursuant to the VSP, eligible employees will have the opportunity to resign voluntarily from employment in exchange for the VSP benefits."
Details About the Voluntary Separation Programme?
According to reports, several Indian employees in the L1-L7 band in Amazon’s experience and technology team have been asked to quit voluntarily. The company has reportedly sent a note to these employees saying that they are eligible for the VSP. Eligible employees will have the opportunity to resign voluntarily from employment in exchange for VSP benefits, according to the company’s note. The VSP has to be submitted via smart forms between November 16 and 30.
Amazon’s voluntary separation programme includes a lump sum severance pay equivalent to 22-week base pay, up to a 20-week paid severance, one-week base salary for every six months of service, six-month medical insurance coverage or equivalent insurance premium amount.
Amazon’s Shutting Businesses In India
A day after Amazon announced to shut its edtech business, Amazon Academy, in India, the company has now also decided to close down its food delivery business, Amazon Food, in India from December 29, according to a communication sent by the e-commerce firm to its restaurant partners in the country.
The move to shut the businesses comes after Amazon India was summoned to appear before the deputy chief labour commissioner in Bengaluru on Wednesday, in connection with the sacking of employees.
It came after NITES, a Pune-based union working for the rights of employees of IT companies, recently submitted a petition and requested the Union government and the state labour authorities to conduct an inquiry regarding the “unethical and illegal layoffs" email being sent to employees by Amazon. The IT union claimed that Amazon forcibly terminated a large number of employees in India.
The e-commerce giant has started laying off employees across the company amid an “unusual and uncertain macroeconomic environment" and plans to cut 10,000 or 3 per cent of its workforce. Its CEO Andy Jassy has also said Amazon will continue to cut jobs into 2023 as it adjusts to business conditions and the decisions will be shared with impacted employees and organisations early in 2023.
In a series of IT sector layoffs, before Amazon, Twitter and Meta also laid off employees. Mark Zuckerberg, CEO of Facebook’s parent company Meta Platforms, on November 9 said the company has decided to reduce the size of its team by about 13 per cent and let more than 11,000 employees go. Twitter has also laid off 50 per cent of its employees. Google and HP are also now planning layoffs.
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