Amazon Severance Package — Calculator + 2023-2026 Layoff Benchmark

What Amazon has historically paid

Amazon's largest documented layoff event spanned November 2022 through January 2023, ultimately affecting just over 18,000 employees — primarily in Amazon Stores, the People, Experience and Technology (PXT) group, recruiting, and devices. CEO Andy Jassy's January 18, 2023 memo confirmed that affected U.S. employees would receive "a separation payment, transitional health insurance benefits, and external job placement support," though the memo did not specify exact dollar amounts. The most detailed public reporting on the package formula comes from Fortune (November 2022): one week of base pay for every six months of tenure, with a reported minimum of four weeks and a maximum of 20 weeks. Employees also received a weekly stipend of $297 toward COBRA premiums once Amazon's direct coverage ended, and restricted stock units continued to vest through the active severance period. Notably, employees were not required to repay signing bonuses or relocation assistance, and Amazon did not publicly report any broader RSU acceleration beyond vesting-in-progress tranches. In March 2023, Jassy announced approximately 9,000 additional cuts across AWS, Twitch, advertising, and PXT — on top of the earlier 18,000. CNBC reported that affected U.S. employees received a 60-day non-working notice period with full pay and benefits before additional severance kicked in. Amazon did not publish a separate severance memo for the March 2023 round; the November 2022 framework is the most fully documented benchmark. Amazon's RSU vesting schedule is notably back-loaded at 5%-15%-40%-40% over four years, meaning employees in years one or two lose the large majority of their equity value upon separation. Unlike Google's January 2023 package, Amazon has not publicly confirmed any policy of accelerating unvested RSU tranches at layoff. Immigration support was not publicly detailed in employee communications; Fortune reported in January 2023 that employees were not given specific details about immigration assistance, making this a critical item to negotiate in writing.

Recent layoff context

Amazon has conducted at least four significant workforce reduction events since late 2022: the November 2022-January 2023 wave (~18,000 employees across stores, PXT, and devices), the March 2023 round (~9,000 across AWS, Twitch, advertising, and PXT), rolling cuts through 2024 affecting Audible, Prime Video, Twitch, and AWS teams, and a large October 2025 round of approximately 14,000 corporate positions that Amazon signaled would continue into 2026. Amazon's headquarters is in Seattle, Washington. Washington enacted its own mini-WARN Act effective July 27, 2025, covering private employers with 50 or more in-state employees — a lower threshold than the federal WARN Act's 100-employee floor. Amazon also files Cal-WARN notices covering Bay Area employees and has filed WARN notices in Virginia and New Jersey for AWS and corporate operations. The October 2025 and early 2026 cuts prompted a WARN Act investigation by law firm Strauss Borrelli regarding potential Seattle-area compliance.

What to negotiate at Amazon

• RSU acceleration for back-loaded vesting tranches: Amazon's 5%-15%-40%-40% schedule concentrates 80% of equity value in years three and four. If you are in year two or early year three, ask for acceleration of the next one or two vesting events or a cash equivalent — Amazon does not publicly offer this by default, making negotiation essential.
• Severance-week extension beyond the 20-week cap: The reported formula (1 week per 6 months, maximum 20 weeks) is a documented default, not a ceiling. Senior employees and those whose tenure has placed them near a milestone may negotiate additional weeks.
• COBRA subsidy duration and amount: The publicly reported $297/week COBRA stipend was tied to the 2022-2023 package framework. Ask for the stipend to be extended to 12 months or structured as a lump-sum healthcare fund, particularly if you have dependents or ongoing treatment.
• Immigration transition support in writing: Fortune's reporting noted that Amazon employees were not given specific details about immigration assistance. If you hold H-1B, L-1, or O-1 status, demand written confirmation of the scope of immigration counsel, whether Amazon will fund a portability analysis, and the exact timing of USCIS notification to maximize your 60-day grace period.
• Severance eligibility for Pivot or URA-classified exits: Amazon's Pivot performance process and Unregretted Attrition Rate (URA) targets are used to manage involuntary exits that are classified as performance-based rather than layoffs. Performance exits typically carry reduced or no severance. If your separation originated from a Pivot process coinciding with a documented reduction in force, consult an employment attorney about whether the exit should be reclassified as a layoff — with full severance entitlement.
• Rehire eligibility and reference language: Amazon severance agreements have historically included language governing future rehire eligibility. Review any rehire restriction clause carefully and negotiate its removal or limitation, as it can affect your ability to return to Amazon in a different role. Also secure a neutral reference script and written clarification of how internal performance ratings are shared in background checks.

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FAQ

How much severance did Amazon pay in the 2023 layoffs?

According to Fortune's reporting on Amazon's 2022-2023 package framework, affected U.S. employees received one week of base pay for every six months of tenure, with a reported minimum of four weeks and a cap of approximately 20 weeks. Amazon also provided a $297 per week COBRA stipend, paid out remaining PTO, and allowed RSUs to continue vesting through the active severance period. Andy Jassy's published January 18, 2023 memo described the package broadly as "a separation payment, transitional health insurance benefits, and external job placement support" without specifying exact amounts. Individual packages varied by tenure.

Do Amazon RSUs accelerate at termination?

No publicly documented Amazon layoff has included a policy of accelerating unvested RSU tranches at separation, in contrast to Google's January 2023 package which explicitly accelerated at least 16 weeks of GSU vesting. Fortune's 2022-2023 reporting indicates Amazon RSUs continued to vest through the active severance period — meaning tranches already in progress vested on schedule — but unvested shares beyond that window were forfeited. Given Amazon's back-loaded 5%-15%-40%-40% vesting schedule, this can represent a significant financial loss for employees in years one through three. RSU acceleration is therefore a high-priority negotiating point.

Does Amazon pay severance for "URA" or Pivot-related terminations?

Amazon uses an Unregretted Attrition Rate (URA) metric and a formal performance management process called "Pivot" to manage involuntary exits classified as performance-based rather than business-driven layoffs. Employees who fail Pivot may be offered a reduced severance package as part of a negotiated departure, but this is distinct from — and typically less generous than — the layoff severance formula. Employees who lose a Pivot appeal or who are terminated without severance offered may have no severance entitlement. If your Pivot exit coincided with a documented workforce reduction, consult an employment attorney before signing.

Does WARN apply to Amazon layoffs in Washington state?

Washington state enacted its own mini-WARN Act effective July 27, 2025, which applies to private employers with 50 or more in-state employees — a lower threshold than the federal WARN Act's 100-employee minimum. Amazon's Seattle headquarters and Washington-based workforce easily clear both thresholds. Prior to July 2025, only the federal WARN Act applied in Washington. Amazon filed federal WARN notices in connection with its October 2025 layoffs covering Washington employees; those separations required at least 60 days' advance written notice. California and New York similarly require WARN notice for Amazon's Bay Area and NYC-area workforce reductions.

What happens to Amazon severance if I was offered a Voluntary Severance package?

In late 2022, Amazon offered voluntary buyout packages to some PXT employees as an alternative to waiting for involuntary layoffs. Gizmodo reported that employees who accepted voluntary separation received severance terms, though Amazon did not publicly specify whether the formula matched the involuntary layoff package. Voluntary departures under a buyout generally carry the same signing-bonus and relocation non-clawback protections as involuntary layoffs; however, voluntary resignation without a formal buyout offer does not entitle employees to any severance. If you are offered a voluntary package, treat it as negotiable — the same levers (weeks, COBRA, RSU vesting, reference language) apply.