In the season of mass layoffs, Amazon.com Inc has reportedly decided to cut employee stock awards as well. As per reports, Amazon has said that it would reduce the employee stock awards, a part of its compensation plan, as the company tries to navigate a tough economy.
According to a Reuters report, Amazon is also considering the possibility of adjusting its compensation model in the future in order to be more balanced between base cash compensation and equity. It adds that a company spokesperson, in an emailed statement, said, “We made the decision to reduce RSU (restricted stock units) awards in the final outlook year by a small amount (other years are not impacted).
In addition this, the report cites another publication’s report mentioning that Amazon has plans to change its pay structure. The company has also reportedly said that it would re-evaluate 2025 compensation in the first quarter of next year to “plan for stock variation.”
Amazon’s move to trim employee stock awards comes weeks after the e-commerce giant announced another round of massive job cuts at a time when the world economy is grappling with an economic downturn. Before this, the company had also clarified that the job cuts would continue till 2023.
Recently, Amazon also laid off some employees in its gaming division. While the exact number of impacted people is not known, it was clear that most layoffs took place in the US. Amazon, like its global peers, resorted to job cuts to trim its costs.