According to reports, Amazon’s mandatory five-day work-from-office policy, which went into effect on January 2, 2025, is now making it more difficult for the company to recruit and retain employees. The rule ended the hybrid model introduced during the pandemic and has sparked intense debate among employees and hiring teams. The policy is preventing Amazon from hiring highly sought-after talent, particularly in quickly expanding fields like generative AI, according to a Business Insider report that cited internal documents and conversations with recruiters.
The “Hub Strategy” Causing Frustration
As part of the return-to-office mandate, Amazon introduced a “hub strategy”, requiring employees to relocate near designated Amazon offices. According to reports, those who refuse to relocate are being treated as though they resigned voluntarily, which makes the policy even more stringent than first thought.
This has not only discouraged potential hires but has also sparked a rise in current employees leaving the company. Recruiters reportedly find it challenging to fill positions, with many candidates turning down lucrative offers from Amazon in favour of competitors offering more flexible work arrangements, even at lower pay. One recruiter told Business Insider, “We are losing out on tech talent due to this.”
Competitors Gaining From Amazon’s Losses
The strict RTO mandate is reportedly giving competitors an edge. Bloomberg recently reported that Oracle has hired over 600 Amazon employees in the past two years. Recruiters from rival firms have reportedly found it easier to attract frustrated Amazon workers, using flexible work policies as a selling point.
Amazon’s Defence Of The RTO Policy
Amazon, however, has denied these claims, maintaining that it continues to attract and retain top talent. In a statement to Business Insider, a company spokesperson said, “We are always looking for ways to optimise our recruiting strategies and exploring alternate talent-rich locations.” The spokesperson also defended Amazon’s office-first philosophy, saying, “We continue to believe that teams produce the best results when they’re collaborating and inventing in person, and we’ve observed that to be true now that we’ve had most people back in the office each day for some time.”
Impact On Tech Hiring
While Amazon stands firm on its stance, insiders suggest the return-to-office mandate may be limiting innovation, especially in critical areas like AI development. With skilled professionals preferring companies offering remote or hybrid options, Amazon’s rigid approach could have long-term effects on its competitiveness. For now, the debate over RTO policies continues to divide workplaces across the tech industry and Amazon’s experience is a clear sign of how much flexibility matters in today’s job market.