Amazon plans to cut employee stock awards amid a tough economy
(Reuters) – Amazon.com Inc said it will reduce employee stock awards that are part of its compensation plan as the e-commerce giant navigates an uncertain economy.
“We made the decision to reduce RSU (restricted stock unit) awards in the final view year by a small amount (other years are not affected),” an Amazon spokeswoman said in an email, but did not specify the period of the final view year. .
The news comes weeks after Amazon announced another round of layoffs, adding to a wave of layoffs sweeping the tech sector as a tough economy forces companies to downsize.
Business Insider had first reported the planned change to the company’s pay structure, saying Amazon would re-evaluate 2025 compensation in the first quarter of next year “to plan for stock volatility.”
The company considered the possibility of adapting its compensation model to a more balanced balance between base compensation and equity in the future, considering the combination of uncertain economy and bonus budget, the spokesperson said.
Amazon shares are up more than 20 percent this year, from nearly 50 percent in 2022.
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