Amazon plans to trim employee stock
awards amid tough economy
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[April 06, 2023]
(Reuters) -Amazon.com
Inc said it would reduce employee stock awards, a part of its
compensation plan, as the e-commerce giant navigates an uncertain
economy. |
![](../images/040623PIX/busine58.jpg)
The logo of Amazon is seen at the company
logistics center in Lauwin-Planque, northern France, January 5, 2023.
REUTERS/Pascal Rossignol |
"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)," an Amazon spokesperson said in an emailed statement,
without specifying the period of the final outlook year.
The news comes weeks after Amazon announced a second round of
mass layoffs, piling on to a wave of job cuts that has swept the
technology sector as a rough economy forces companies to get
leaner.
Business Insider had first reported the planned change in the
company's pay structure and said Amazon would reevaluate 2025
compensation in the first quarter of next year to "plan for
stock variation".
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,
the spokesperson said.
Amazon's shares have gained more than 20% this year, following a
near 50% tumble in 2022.
(Reporting by Arunima Kumar in Bengaluru; Editing by Devika
Syamnath)
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