if it’s one employee yes. if you’re going to be basically liable every time you fire someone it’s not worth it.

That's 11 figures annually. Even if you make that settlement nearly 100 times a year, you still come out ahead

i think that the way a corporation would mitigate this risk is different. if i need to pay you 5million in a wrongful termination scenario vs paying you 250k per year, I could make you work for 20 years doing nothing and make your life miserable.

The key thing is they don't want want people working for them badmouthing the company. I'm sure they view a few million a year in settlements instead of the bad PR of letting it continue, and at such a high level as these people were working at.

Also making a person's life miserable at work is something a person can easily document over a year or two and then bring that lawsuit, so that's not a great option either.

That settlement is still coming from one individual's budget within the company. Even though the settlement amount is not material for a company the size of Amazon, it will be material to that one employee, who may even be fired herself (e.g. if she is in HR), so the incentive structure of the individuals within the Amazon hive mind will still be impacted.