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

The European Space Agency selected two companies on Wednesday to advance designs of a cargo spacecraft that could establish the continent’s first sovereign access to space.  The two awardees, major…

ESA prepares for the post-ISS era, selects The Exploration Company, Thales Alenia to develop cargo spacecraft

Expressable is a platform that offers one-on-one virtual sessions with speech language pathologists.

Expressable brings speech therapy into the home

The French Secretary of State for the Digital Economy as of this year, Marina Ferrari, revealed this year’s laureates during VivaTech week in Paris. According to its promoters, this fifth…

The biggest French startups in 2024 according to the French government

Spotify is notifying customers who purchased its Car Thing product that the devices will stop working after December 9, 2024. The company discontinued the device back in July 2022, but…

Spotify to shut off Car Thing for good, leading users to demand refunds

Elon Musk’s X is preparing to make “likes” private on the social network, in a change that could potentially confuse users over the difference between something they’ve favorited and something…

X should bring back stars, not hide ‘likes’

The FCC has proposed a $6 million fine for the scammer who used voice-cloning tech to impersonate President Biden in a series of illegal robocalls during a New Hampshire primary…

$6M fine for robocaller who used AI to clone Biden’s voice

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Is it…

Tesla lobbies for Elon and Kia taps into the GenAI hype

Crowdaa is an app that allows non-developers to easily create and release apps on the mobile store. 

App developer Crowdaa raises €1.2M and plans a US expansion

Back in 2019, Canva, the wildly successful design tool, introduced what the company was calling an enterprise product, but in reality it was more geared toward teams than fulfilling true…

Canva launches a proper enterprise product — and they mean it this time

TechCrunch Disrupt 2024 isn’t just an event for innovation; it’s a platform where your voice matters. With the Disrupt 2024 Audience Choice Program, you have the power to shape the…

2 days left to vote for Disrupt Audience Choice

The United States Department of Justice and 30 state attorneys general filed a lawsuit against Live Nation Entertainment, the parent company of Ticketmaster, for alleged monopolistic practices. Live Nation and…

Ticketmaster antitrust lawsuit could give new hope to ticketing startups

The U.K. will shortly get its own rulebook for Big Tech, after peers in the House of Lords agreed Thursday afternoon to pass the Digital Markets, Competition and Consumer bill…

‘Pro-competition’ rules for Big Tech make it through UK’s pre-election wash-up

Spotify’s addition of its AI DJ feature, which introduces personalized song selections to users, was the company’s first step into an AI future. Now, Spotify is developing an alternative version…

Spotify experiments with an AI DJ that speaks Spanish

Call Arc can help answer immediate and small questions, according to the company. 

Arc Search’s new Call Arc feature lets you ask questions by ‘making a phone call’

After multiple delays, Apple and the Paris area transportation authority rolled out support for Paris transit passes in Apple Wallet. It means that people can now use their iPhone or…

Paris transit passes now available in iPhone’s Wallet app

Redwood Materials, the battery recycling startup founded by former Tesla co-founder JB Straubel, will be recycling production scrap for batteries going into General Motors electric vehicles.  The company announced Thursday…

Redwood Materials is partnering with Ultium Cells to recycle GM’s EV battery scrap

A new startup called Auggie is aiming to give parents a single platform where they can shop for products and connect with each other. The company’s new app, which launched…

Auggie’s new app helps parents find community and shop

Andrej Safundzic, Alan Flores Lopez and Leo Mehr met in a class at Stanford focusing on ethics, public policy and technological change. Safundzic — speaking to TechCrunch — says that…

Lumos helps companies manage their employees’ identities — and access

Remark trains AI models on human product experts to create personas that can answer questions with the same style of their human counterparts.

Remark puts thousands of human product experts into AI form

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 fiber-optic cable connecting the continents of Africa and Australia. The news comes as the major cloud hyperscalers battle it…

Google to build first subsea fiber-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, was working improperly for several hours on Thursday in Europe. At first, we noticed it wasn’t possible to perform a web search at all. Now it…

Bing’s API was 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 “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.

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