Amazon will reduce employee stock rewards after layoffs 2023

Following a second round of mass cutbacks at Amazon Inc, the e-commerce behemoth will now reduce employee stock awards as it navigates an uncertain economy, according to an official statement issued by a spokesperson, who did not specify the final prognosis year.

A spokesperson for Amazon was quoted by Reuters as saying, “We decided to reduce RSU (restricted stock unit) awards in the final outlook year by a minor amount (other years are unaffected).”

The news comes weeks after Amazon announced a second round of mass cutbacks, adding to a surge of job cuts that have swept the technology sector as a sluggish economy forces businesses to trim their workforces.

Following redundancies, Amazon intends to reduce employee stock awards.

Business Insider first reported that Amazon would reevaluate compensation for 2025 in the first quarter of the following year in order to “plan for stock variation.”

“The company was contemplating the possibility of adjusting its compensation model in the future to be more balanced between base monetary compensation and equity,” the spokesperson said, referring to the uncertain economy and compensation budget.

As part of its broader layoffs, Inc. laid off approximately 100 employees from its video-game divisions, including workers from Prime Gaming, Game Growth, and the company’s San Diego studio.

Christoph Hartmann, vice president of Games, wrote in a memo to employees on Tuesday, “Our resources will be aligned to support our focus on content.”

In the future, we will continue to invest in our internal development initiatives, and our teams will continue to expand as our programs advance.

Amazon has struggled to leverage on its gaming resources, including through its Crown channel, a Twitch streaming entertainment program.

Following a near 50% drop in 2022, the company’s stock has increased by more than 20% this year.

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