Amazon Inc. has said it would reduce employee stock awards, which are part of its compensation plan, as the e-commerce giant navigates an uncertain economy.
“We made the decision to reduce restricted stock unit awards in the final outlook year by a small amount (other years are not impacted),” an Amazon spokesperson said in an emailed statement to Reuters.
The announcement comes just weeks after Amazon announced a second round of mass layoffs, adding to a wave of job cuts that have swept the technology sector as the economy forces companies to become leaner.
The planned change in the company’s pay structure was first reported by Business Insider, which stated that Amazon would reevaluate 2025 compensation in the first quarter of next year to “plan for stock variation.”
According to the spokesperson, after considering the combination of an uncertain economy and its compensation budget, the company is considering adjusting its compensation model in the future to be more balanced between cash compensation and equity.
Amazon’s stock has risen more than 20% this year, after falling nearly 50% in 2022.