November 30, 2022

Amazon has asked the Indian employee to resign voluntarily. ‘Resign yourself if you want better benefits’, Amazon offers to Indian workers ahead of layoffs

Amgen has begun a performance-based review to cut about 6 percent of its workforce. The company is working on a plan to cut around 10,000 workers under this.

Indian workers have received resignations

Image credit source: AP

E-commerce sector giant Amazon has recently started an exercise to lay off 10,000 people. For this, the performance of the employees is being reviewed and the worst performing employees will be fired. The company has been firing such employees every year based on performance. However, this number will be the largest number of layoffs in the company’s history. To reduce the chances of any disputes due to more layoffs, Amazon has also started a new offer to employees. Accordingly, if he himself resigns from the company, then he will get many benefits after leaving the company. According to media reports, many Indian employees have been offered voluntary severance programmes, i.e. voluntary resignations.

What is this VSP program?

According to reports, some employees working in India working in L1 to L7 band have received offers for Voluntary Severance Program i.e. VSP. Accordingly, if an employee accepts VSP, he will get monitoring facility. However, according to internal documents, employees must sign the offer by 30:30 on November 30, failing which they will be included in the review.

Indian workers taking VSP under this offer will get 22 weeks basic pay and one week basic pay for every 6 months of service. The limit of which will be 20 weeks. Along with this the employees will also get 6 months insurance benefits. According to the report, in case of removal based on poor performance in the review, payment is made based on pre-determined rules of the company, which will be much less than the benefits of VSP. There is a possibility that this way the company may lay off more people and it will have to lay off fewer people than before, which may also improve its image.

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The effect of government austerity?

In fact the government has been strict in forcing people out of jobs. The Labor Ministry has asked Amazon India to appear before the Deputy Chief Labor Commissioner, Bangalore in this regard. A union has applied in this regard. Perhaps to avoid controversy, Amazon offered the program so that employees could voluntarily resign with benefits. The company is actually going to lay off about 10,000 people. It will be the largest layoff in the company’s history.

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