Amazon recently announced plans to reduce approximately 14,000 managerial positions and around 200 employees in its North America stores unit by early 2025, primarily targeting a restructuring of their management layers to streamline operations. This reduction aligns with CEO Andy Jassy's strategic vision to boost the ratio of individual contributors to managers by at least 15% before Q1 2025 concludes. With such a substantial number of employees set to receive severance packages in the coming months, it's important for those potentially affected to have some awareness of what they can expect. If you're in a position where you're concerned about these changes, we will give an overview based on past layoff trends at Amazon as well as how Amazon's projected severance package in 2025 stacks up compared to competitors. Additionally, by sharing your severance offer on fired.fyi, you can see how your package compares to others to help you negotiate the severance you deserve.

Amazon Layoffs 2025: What We Know So Far

CEO Andy Jassy shared the following announcement publicly, which will reportedly impact around 14,000 Amazon employees by end of Q1 2025:

We’re asking each s-team organization to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025.

Breakdown of Amazon's Previous Severance Packages

Amazon Severance Trends in 2022 and 2023

While Amazon has not publicly disclosed detailed severance packages for the upcoming 2025 layoffs, insights can be drawn from their historical severance practices, particularly focusing on their 2023 policies:

Standard Severance Package Structure

Amazon has maintained a structured approach to severance, with full pay and benefits continuing through a 60-day (or 90-day in New York state) notice period, followed by a tenure-based severance payment. The company differentiates between corporate and warehouse employees in their severance calculations, reflecting the different roles and compensation structures across the organization. Departing employees were also forgiven of any outstanding obligations for signing bonus or relocation expenses.

Corporate Employee Severance

For corporate employees, Amazon's approach has tied severance directly to length of service. The company has typically provided 1-2 weeks of base pay per year of employment, though this is subject to an upper limit of approximately 20 weeks, with some cases extending to 26 weeks. This calculation method allows longer-tenured employees to receive more substantial packages, recognizing their extended service to the company.

Warehouse Employee Severance

In contrast to the tenure-based approach for corporate staff, warehouse employees have generally received a standardized package of 1-2 weeks of pay, regardless of how long they've been with the company. This simplified structure reflects the different employment patterns and turnover rates typically seen in warehouse operations.

How Amazon's Severance Compares to Industry Standards

Lined up against peer tech company severance comparisons, Amazon's packages are on the less competitive side:

Meta

Meta employees received 16 weeks of base pay, plus 2 weeks for each year of service with no cap, and received a payout for all of their PTO, plus continued stock (RSU) vesting through the current vesting period. They also received six months of health insurance coverage, and career support services like resume reviews and job placement assistance. Immigration support was also provided for departing employees on work visas.

Google

Google also offered 16 weeks of pay plus an extra two per year of service, exactly the same as Meta. However, the stock vesting acceleration period was longer at 16 weeks, which is much more valuable for affected employees at senior levels. Other benefits were similar, such as six months of healthcare coverage and access to career transition services.

Microsoft

Microsoft's package is somewhat of a hybrid of all of the above. Reports vary, but generally mention a severance package of 2 months pay, plus 1 week for every six months of service. Microsoft also generally granted six months of accelerated stock vesting. Healthcare coverage continuation was a stipend covering 6 months of COBRA. While reasonably generous, Meta's package sets a higher standard.

What to Expect from Amazon's Severance Packages in 2025

Based on Amazon's philosophy and severance offer history, corporate employees can expect much of the same in 2025. While perhaps generous when compared to the average U.S. company, Amazon's packages will likely again be less generous compared to peer companies:

Core Financial Benefits

• 60 (or 90 in New York state) days base pay
• Additional week of pay per six months of service (20 or 26-week cap)
• RSU vesting through notice period
• Forgiveness of any outstanding obligations for signing bonus or relocation expenses.

Healthcare Continuation

• COBRA coverage stipend matching severance duration

Conclusion

As Amazon implements these changes, maintaining transparency about severance terms helps everyone make informed decisions. While their packages typically offer less than some tech peers, their consistency provides valuable predictability. We encourage affected employees to share their packages anonymously to help others understand their options.

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