© Reuters. FILE PHOTO: The Amazon logo is seen at the company’s logistics center in Lauwin-Planque, northern France, January 5, 2023. REUTERS/Pascal Rossignol
(Reuters) – Amazon.com Inc said it would reduce stock awards to employees as 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 latest prospective year by a small amount (other years are not affected),” an Amazon (NASDAQ:) spokesperson said in a mailed statement. mail, without specifying the period of the last year of perspective.
The news comes weeks after Amazon announced a second round of layoffs, adding to a wave of job cuts that has swept the technology sector as a tough economy forces companies to become more efficient.
Business Insider first reported the planned change to the company’s salary structure, saying Amazon would reassess 2025 compensation in the first quarter of next year to “plan for stock variation.”
The company was considering adjusting its compensation model in the future to be more balanced between cash and equity based compensation, after analyzing the combination of an uncertain economy and its compensation budget, the spokesperson said.
Amazon shares have gained more than 20% this year, after a nearly 50% drop in 2022.
