Crisis Experts Debate Amazon’s Latest Move: Another Shoe to Drop?

Comment

When a New York Times piece came out in August that described Amazon’s workplace culture as “bruising,” Amazon cofounder and CEO Jeff Bezos acted quickly to dampen the story’s blow. He wrote a memo to employees saying the account “doesn’t describe the Amazon I know” and pointed out a separate piece by an Amazon engineer who described the Times article as “utter reader bait.”

It was a smart approach, suggests Marina Ein, whose Washington, D.C.-based crisis communications firm has represented Michael Milken and Dominique Strauss-Kahn, among others. “I thought the company was acting on very good advice,” she says.

More confounding to Ein is a new post authored by former journalist and current Amazon spokesman Jay Carney, in which Carney not only systematically attacks the now two-month-old Times piece for being imbalanced but works to undermine several former employees quoted in the story.

One is former site merchandiser Bo Olson, who spent roughly 20 months at Amazon and had told the Times for its story, “You walk out of a conference room and you’ll see a grown man covering his face . . . Nearly every person I worked with, I saw cry at their desk.”

Wrote Carney of Olson today: “His brief tenure at Amazon ended after an investigation revealed he had attempted to defraud vendors and conceal it by falsifying business records. When confronted with the evidence, he admitted it and resigned immediately.”

“I think it’s crazy,” says Ein of Carney’s unexpected missive. “When you have a damaging story with collateral implications for the future, you tamp it down. You don’t reawaken it and draw more attention to it than it might have received in the first place.” (According to the Times, its Amazon piece has received more than five million page views already, making it among the outlet’s most-read stories of the year.)

Outing Olson makes it worse, says Ein. “Not only does it sound vindictive, but I don’t think there’s any time that it’s wise for a company to get into the personal and confidential details of an employee’s hiring or firing.”

In his post, Carney explains that Amazon felt compelled to take action when the New York Times wouldn’t listen to its arguments. “We presented the Times with our findings several weeks ago, hoping they might take action to correct the record. They haven’t, which is why we decided to write about it ourselves.”

Unlike Ein, crisis manager Jeff Eller approves of Amazon’s no-holds-barred strategy, noting that it has worked effectively in the past, including in a similar tussle between the New York Times and Wal-mart last year. One day after the Times published an opinion piece that characterized Wal-mart as a “net drain on taxpayers,” Wal-mart battled back, cheekily annotating the piece with notes that include, “We are the largest taxpayer in America. Can we see your math?”

Says Eller, who represented Firestone in its tire recall in 2000 and General Motors in its ignition switch recall last year, “There’s this inherent perception that the Times is too big to tackle. But I don’t think so. They put their pants on just like everybody does.”

Still, fighting back aggressively is one thing. Fighting back long after people have stopped talking about a story is another. Certainly, the timing of Amazon’s newest response to the Times is, well, strange.

Indeed, a third, top crisis manager who asked not to be named has another theory about Amazon’s latest lob, which is that another shoe may be about to drop.

“It could be that Amazon is pissed off,” as seems to be the case, says this veteran of public relations. “Amazon could also be trying to issue a warning; it could be that there’s a class-action suit in the works.” (Indeed, employment attorneys have previously suggested that a “creative attorney” could probably make hay with the anecdotes published in the Times.)

A third possibility, suggests this person, is that “something else is coming that we have no line of sight into yet, like a news magazine like ‘60 Minutes’ or ‘20/20’ that’s preparing a segment.”

Certainly, it wouldn’t be unprecedented, given the many Times stories to be picked up by other outlets, including nightly news magazines. Amazon is understandably a popular topic for their viewers, too.

Alas, only time will tell if the story of Amazon’s workplace culture fades away again or there’s more to come.

Asked about Carney’s post today, a spokesman for “60 Minutes” said simply in an email, “We don’t discuss what we may or may not be working on.”

Amazon declined to comment further.

More TechCrunch

ZeroPoint claims to have solved compression problems with hyper-fast, low-level memory compression that requires no real changes to the rest of the computing system.

ZeroPoint’s nanosecond-scale memory compression could tame power-hungry AI infrastructure

In 2021, Roi Ravhon, Asaf Liveanu and Yizhar Gilboa came together to found Finout, an enterprise-focused toolset to help manage and optimize cloud costs. (We covered the company’s launch out…

Finout lands cash to grow its cloud spend management platform

On the heels of raising $102 million earlier this year, Bugcrowd is making good on its promise to use some of that funding to make acquisitions to strengthen its security…

Bugcrowd, the crowdsourced white-hat hacker platform, acquires Informer to ramp up its security chops

Google is preparing to build what will be the first subsea fibre optic cable connecting the continents of Africa and Australia. The news comes as the major cloud hyperscalers battle…

Google to build first subsea fibre optic cable connecting Africa with Australia

The Kia EV3 — the new all-electric compact SUV revealed Thursday — illustrates a growing appetite among global automakers to bring generative AI into their vehicles.  The automaker said the…

The new Kia EV3 will have an AI assistant with ChatGPT DNA

Bing, Microsoft’s search engine, isn’t working properly right now. At first, we noticed it wasn’t possible to perform a web search at all. Now it seems search results are loading…

Bing’s API is down, taking Microsoft Copilot, DuckDuckGo and ChatGPT’s web search feature down too

If you thought autonomous driving was just for cars, think again. The so-called ‘autonomous navigation’ market — where ships steer themselves guided by AI, resulting in fuel and time savings…

Autonomous shipping startup Orca AI tops up with $23M led by OCV Partners and MizMaa Ventures

The best known mycoprotein is probably Quorn, a meat substitute that’s fast approaching its 40th birthday. But Finnish biotech startup Enifer is cooking up something even older: Its proprietary single-cell…

Meet the Finnish biotech startup bringing a long lost mycoprotein to your plate

Silo, a Bay Area food supply chain startup, has hit a rough patch. TechCrunch has learned that the company on Tuesday laid off roughly 30% of its staff, or north…

Food supply chain software maker Silo lays off ~30% of staff amid M&A discussions

Featured Article

Meta’s new AI council is composed entirely of white men

Meanwhile, women and people of color are disproportionately impacted by irresponsible AI.

14 hours ago
Meta’s new AI council is composed entirely of white men

If you’ve ever wanted to apply to Y Combinator, here’s some inside scoop on how the iconic accelerator goes about choosing companies.

Garry Tan has revealed his ‘secret sauce’ for getting into Y Combinator

Indian ride-hailing startup BluSmart has started operating in Dubai, TechCrunch has exclusively learned and confirmed with its executive. The move to Dubai, which has been rumored for months, could help…

India’s BluSmart is testing its ride-hailing service in Dubai

Under the envisioned framework, both candidate and issue ads would be required to include an on-air and filed disclosure that AI-generated content was used.

FCC proposes all AI-generated content in political ads must be disclosed

Want to make a founder’s day, week, month, and possibly career? Refer them to Startup Battlefield 200 at Disrupt 2024! Applications close June 10 at 11:59 p.m. PT. TechCrunch’s Startup…

Refer a founder to Startup Battlefield 200 at Disrupt 2024

Social networking startup and X competitor Bluesky is officially launching DMs (direct messages), the company announced on Wednesday. Later, Bluesky plans to “fully support end-to-end encrypted messaging down the line,”…

Bluesky now has DMs

The perception in Silicon Valley is that every investor would love to be in business with Peter Thiel. But the venture capital fundraising environment has become so difficult that even…

Peter Thiel-founded Valar Ventures raised a $300 million fund, half the size of its last one

Featured Article

Spyware found on US hotel check-in computers

Several hotel check-in computers are running a remote access app, which is leaking screenshots of guest information to the internet.

18 hours ago
Spyware found on US hotel check-in computers

Gavet has had a rocky tenure at Techstars and her leadership was the subject of much controversy.

Techstars CEO Maëlle Gavet is out

The struggle isn’t universal, however.

Connected fitness is adrift post-pandemic

Featured Article

A comprehensive list of 2024 tech layoffs

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the first months of 2024. Smaller-sized…

20 hours ago
A comprehensive list of 2024 tech layoffs

HoundDog actually looks at the code a developer is writing, using both traditional pattern matching and large language models to find potential issues.

HoundDog.ai helps developers prevent personal information from leaking

The changes are designed to enhance the consumer experience of using Google Pay and make it a more competitive option against other payment methods.

Google Pay will now display card perks, BNPL options and more

Few figures in the tech industry have earned the storied reputation of Vinod Khosla, founder and partner at Khosla Ventures. For over 40 years, he has been at the center…

Vinod Khosla is coming to Disrupt to discuss how AI might change the future

AI has already started replacing voice agents’ jobs. Now, companies are exploring ways to replace the existing computer-generated voice models with synthetic versions of human voices. Truecaller, the widely known…

Truecaller partners with Microsoft to let its AI respond to calls in your own voice

Meta is updating its Ray-Ban smart glasses with new hands-free functionality, the company announced on Wednesday. Most notably, users can now share an image from their smart glasses directly to…

Meta’s Ray-Ban smart glasses now let you share images directly to your Instagram Story

Spotify launched its own font, the company announced on Wednesday. The music streaming service hopes that its new typeface, “Spotify Mix,” will help Spotify distinguish its own unique visual identity. …

Why Spotify is launching its own font, Spotify Mix

In 2008, Marty Kagan, who’d previously worked at Cisco and Akamai, co-founded Cedexis, a (now-Cisco-owned) firm developing observability tech for content delivery networks. Fellow Cisco veteran Hasan Alayli joined Kagan…

Hydrolix seeks to make storing log data faster and cheaper

A dodgy email containing a link that looks “legit” but is actually malicious remains one of the most dangerous, yet successful, tricks in a cybercriminal’s handbook. Now, an AI startup…

Bolster, creator of the CheckPhish phishing tracker, raises $14M led by Microsoft’s M12

If you’ve been looking forward to seeing Boeing’s Starliner capsule carry two astronauts to the International Space Station for the first time, you’ll have to wait a bit longer. The…

Boeing, NASA indefinitely delay crewed Starliner launch