Amazon Tightens Belt: New Policies on Phone Usage and Expenses Spark Employee Concerns
Amazon is implementing stricter policies on employee phone usage and expense management as part of CEO Andy Jassy's cost-cutting initiative. The company is requiring detailed tracking of work phone usage, adjusting reimbursements based on personal use, and tightening controls on business travel expenses. These measures, along with broader cost-reduction strategies like reducing management layers, are causing concern among employees about job security and a shift towards micromanagement. Amazon defends these changes as a return to its performance-driven culture, aligning with similar trends in other tech giants.

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Amazon, the e-commerce and cloud computing giant, is implementing stricter policies on employee phone usage and expense management as part of CEO Andy Jassy's broader cost-cutting initiative. These new measures are causing ripples throughout the organization, with employees expressing concerns about job security and a perceived shift towards micromanagement.
Phone Usage Tracking and Reimbursement
Amazon is now requiring employees to meticulously track and justify their work phone usage, distinguishing between business and personal activities. The company's $50 monthly phone reimbursement policy is being adjusted based on non-work usage. Amazon Web Services (AWS) employees, in particular, are required to break down their mobile usage proportions, with reimbursements being reduced dollar-for-dollar for personal use.
Expense Management and Business Travel
The retail division of Amazon is also facing tighter controls on business travel and expenses:
- Employees must now justify business trips by outlining expected goals and returns
- Expense claims require detailed breakdowns, including itemized meals
These measures reflect a more stringent approach to cost management within the company.
Broader Cost-Cutting Measures
The new policies are part of a larger cost-reduction strategy implemented by CEO Andy Jassy, which includes:
- Reducing management layers
- Increasing worker-to-manager ratios by 15%
Employee Concerns and Cultural Shift
The implementation of these new policies has led to several concerns among Amazon employees:
- Job Security: Employees are expressing worries about their job stability in light of the cost-cutting measures
- Micromanagement: There's a growing perception of a culture of micromanagement within the company
- Centralized Decision-Making: Significant decisions are increasingly being centralized among top executives
- Communication Gaps: Junior leaders report learning about major policy changes, such as the five-day return-to-office mandate, through press reports rather than internal channels
Amazon's Stance
Amazon defends these changes as a return to its performance-driven culture. The company's approach aligns with similar trends observed at other tech giants like Meta, Google, and Microsoft, who have also implemented cost-cutting measures in recent times.
As Amazon continues to navigate through these changes, the impact on employee morale and overall company culture remains to be seen. The tech industry will be watching closely to see how these measures affect Amazon's performance and position in the competitive landscape.