Amazon is the second-largest employer in America, offering wages and benefits to nearly a million people. It employs warehouse workers, drivers, and corporate employees in dozens of offices around the world.
Its employees are a diverse group, from software engineers to accountants and financial analysts. Some even work on its customer service team. But all of them share a common concern: Amazon is a cutthroat company that doesn’t reward loyalty, according to former employees.
Workers at the e-commerce giant often complain of high turnover rates. Managers try to get rid of underperforming staffers by labeling them as “struggling” and placing them on a performance-review system that requires them to meet targets or be fired.
Unions have tried to organize Amazon warehouses across the country, but a nationwide effort has yet to be successful. In July, a handful of workers at an Amazon fulfillment center in Shakopee, Minnesota, went on strike during Prime Day.
They’ve also complained that they’re being treated like pawns in a high-stakes game. They say that the warehouses are akin to “cult-like” sweatshops and that the pay isn’t enough for low-wage workers, according to media reports.
As a result, many workers are unable to afford to send their kids to college. Some say they aren’t getting the healthcare they need or are being paid less than other low-wage jobs.
The company has a complex performance-review system that some employees believe is unfair. It is reportedly based on an algorithm that evaluates workers’ abilities and how much they are willing to work for the company.
Employees deemed struggling are put on a “Focus” program, which involves coaching and training. If they don’t make progress, they’re moved on to a “Pivot” program and eventually an internal company jury that decides whether they should stay or go.
In the past year, some employees have said they’ve been demoted or forced out of their positions. Some have even alleged that they’ve been sexually harassed at work.
Some workers also complain that they’re not given the same level of training as other Amazon employees. Some even say they are paid less than other Amazon employees.
While Amazon does offer employees an excellent benefits package, it’s not cheap. The average salary for an Amazon employee is around $60,000 to $153,000 per year, and the company pays bonuses and stock options.
The e-commerce giant often avoids paying taxation, even as it reaps billions of dollars in profits each year. It has also been accused of using its size and scale to out-price local and small shopkeepers, creating what is known as the Amazon effect.
As a result, many cities are trying to enact laws that will regulate the e-commerce giant’s operations. Some city governments have passed laws that would force Amazon to pay taxes on its sales, while others are attempting to ban it from acquiring or operating retail stores in their communities.
The company has also been accused of harvesting data about its third-party sellers, despite saying it doesn’t use the information in any way to promote Amazon products. It is a controversial issue that has drawn scrutiny from the F.T.C., the European Union, and lawmakers in the U.S.
