Performance or Attrition? A Strategic HRM Analysis of Amazon’s Talent Management Challenge

This paper critically examines Amazon’s performance management practices through the lens of Strategic Human Resource Management (SHRM). Specifically, it analyses the company’s reliance on Performance Improvement Plans (PIPs) and its culture of “unregretted attrition,” which has been widely described as a form of quiet firing. While these practices achieve short-term cost reductions by removing underperformers, they simultaneously generate long-term risks, including talent loss, reduced innovation capacity, reputational harm, and potential legal challenges. Using theories of organisational justice, human capital, and strategic risk management, this study argues that Amazon’s system undermines fairness perceptions and weakens employee trust and engagement. A situational analysis further reveals that external pressures such as stricter labour regulations and shifting employee expectations amplify these risks. To address the contradictions, two strategic recommendations are proposed: redesigning the performance system to separate coaching from discipline, and adopting a Sustainable HRM model that values employee well-being and long-term human and social capital. These reforms would not only enhance fairness and trust but also align HR practices with Amazon’s innovation-driven strategy. The paper concludes that sustainable and developmental approaches to performance management are critical for retaining talent and maintaining competitive advantage in knowledge-based economies.