April 5 (Portal) – Amazon.com Inc (AMZN.O) said it would reduce stock awards for employees who are part of its compensation plan as the e-commerce giant navigates an uncertain economy.
“We have made the decision to reduce our Restricted Stock Unit (RSU) awards in the most recent guidance year by a small amount (other years are unaffected),” an Amazon spokesman said in an emailed statement, excluding the Specify the period of the last forecast year.
The news comes weeks after Amazon announced a second round of mass layoffs, leading to a wave of job cuts that has swept the tech sector as a rough economy forces companies to slim down.
Business Insider was the first to report the company’s proposed pay structure change, saying Amazon will reassess 2025 compensation in the first quarter of next year to “plan for stock variations.”
The company is evaluating the possibility of adjusting its compensation model in the future to achieve a better balance between base cash compensation and equity after considering the combination of an uncertain economy and its compensation budget, the spokesman said.
Amazon’s shares are up more than 20% this year after falling nearly 50% in 2022.
Reporting by Arunima Kumar in Bengaluru; Editing by Devika Syamnath
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