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Amazon will reduce staff stock awards in a move to cut expenses
https://www.whatjobs.com/news/usa/us-business-news/amazon-will-reduce-staff-stock-awards-in-a-move-to-cut-expenses
By Nithya Bose in Amazon News, posted April 6, 2023
Amazon plans to axe employee stock awards in another aggressive cost-cutting move that follows huge layoff rounds in three months period.
A company spokesperson 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)
However, the spokesperson didn’t specify the period of the final outlook year.
Read More: Meta lowers bonus pay for some employees based on performance
The announcement comes weeks after Amazon announced a second wave of major layoffs by eliminating 9,000 jobs.
That adds to a spate of job losses that have hit the tech sector as the economy pushes companies to become leaner.
Business Insider first reported the proposed change in the company's compensation structure.
It was reported that Amazon will reassess 2025 salary in the first quarter of next year to "plan for stock variation."
Read More: Apple employees could receive yearly bonuses as cost-cutting continues
The spokesperson said: “The company was weighing the possibility of adjusting its compensation model in the future to be more balanced between base cash compensation and equity, after looking at the combination of an uncertain economy and its compensation budget.”
As a part of wider downsizing, Amazon cut around 100 jobs from its video-game units, including Prime Gaming, Game Growth, and the company's San Diego studio.
Games Vice President Christoph Hartmann said: “Our resources will be aligned to support our focus on content.
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“Going forward, we will continue to invest in our internal development efforts, and our teams will continue to grow as our projects progress."
Amazon has had a tough time capitalizing on its resources in gaming, especially through its Crown channel, an entertainment show on the Twitch streaming service.
After a nearly 50 percent drop in 2022, the company's shares have climbed more than 20 percent this year.
Source: Mint
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