Sunday, July 21, 2024

Amazon plans to reduce employee stock awards in 2025: Report

Amazon.com Inc is trimming the number of shares it plans to give employees as part of their 2025 compensation, Business Insider reported on Wednesday, citing a memo.

The economic climate and company budget were behind reductions to the 2025 employee stock awards, called restricted stock units (RSUs), Amazon told managers, according to the report.

The memo cited by Insider also mentioned a possible change in Amazon’s pay model that would give staff more cash, which could make up for any potential weakness in its stock price.

The company did not immediately respond to a Reuters request for comment.

Amazon will reevaluate the 2025 compensation in the first quarter of next year to “plan for stock variation”, Insider said, citing another internal document.

Last month, the company said it would axe another 9,000 roles, piling on to a wave of layoffs that has swept the technology sector as an uncertain economy forces companies to get leaner. (Reporting by Arunima Kumar in Bengaluru; Editing by Devika Syamnath)

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