Amazon Layoff & Severance Overview

Based on publicly reported information from 2022-2024 layoffs, Amazon has provided severance packages, though the company has not published a standard policy. Reported packages have included pay continuation and benefits extension, but the amount and structure vary by employee level, tenure, location, and individual agreement. Your actual severance is determined by your separation agreement, which you should review carefully before signing. Do not rely on past examples as a guarantee of your own package.

Ask about: (1) the total severance amount and payment method, (2) what benefits continue during severance, (3) COBRA eligibility and costs, (4) what happens to your RSUs and equity, (5) your final paycheck details, (6) outplacement support, (7) the deadline to sign separation agreement, and (8) what documents you can download before access ends. Get answers in writing whenever possible.

Based on employee reports from recent layoffs, Amazon has paid out unused PTO in most cases, though this is governed by state law (federal law does not require PTO payout). Payment depends on your state's requirements and should be included in your final paycheck. Verify the exact amount in your final pay stub.

Unvested Restricted Stock Units (RSUs) are typically forfeited upon termination, unless your offer letter or separation agreement specifies otherwise. Vested RSUs and Amazon stock held in your account remain yours. Stock options follow standard practice: you may have a limited time (typically 90 days) to exercise vested options before they expire. Review your equity documents and consider consulting a financial advisor about your options.

Employee reports from 2023 layoffs indicate that Amazon provided outplacement support in some cases, though this has not been consistently offered to all affected employees. The extent of support has varied by role level and region. Ask your HR representative specifically about what career counseling, resume assistance, or job search resources are included in your package.

Severance negotiation depends on your individual situation. Some employees have reported successfully negotiating improved terms or additional benefits, while others have not. If you believe your package is low relative to your tenure or level, you can ask HR if there is flexibility. However, do not expect a guaranteed response. Consider consulting an employment attorney before negotiating, especially if you have special circumstances or concerns about the separation agreement terms.

In general, employees separated due to a layoff (involuntary job loss) are eligible for unemployment insurance. However, eligibility varies by state, prior earnings, and specific circumstances. Severance payments may affect your benefit timing or amount in some states. Apply immediately through your state unemployment office—do not wait to see if severance covers your needs. You can apply while receiving severance.

Before access is terminated, download: (1) tax documents (W-2, 1098, if applicable), (2) benefits documents and summary plans, (3) stock/equity statements showing vesting, (4) your employment offer letter, (5) performance reviews if permitted, and (6) contact information for professional network. Do not copy company confidential files, code, customer data, or internal documents. Focus on documents that will help you with taxes, job search, and next steps.

Verify: (1) the exact severance amount and payment timeline, (2) which benefits continue and for how long, (3) what you are releasing or waiving by signing, (4) non-compete, non-disparagement, and confidentiality clauses, (5) equity treatment, and (6) the revocation period (how long you can change your mind after signing). If any language is unclear or concerning, consult an employment attorney before signing.

COBRA continues your Amazon health plan for up to 18 months but is expensive (you pay the full premium plus administrative fees). ACA marketplace plans (healthcare.gov) may offer lower costs, especially with subsidies based on your lower income during job search. Compare both options: COBRA cost, marketplace plan costs with subsidies, and coverage differences. You have 60 days to elect COBRA, and 60 days for marketplace enrollment if you qualify for special enrollment due to job loss. Use Healthcare.gov and our COBRA vs. Marketplace Calculator to compare costs.