Amazon plans to trim employee stock awards amid tough economy

Bengaluru – Amazon.com says it will reduce employee stock awards, a 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 final outlook year by a small amount (other years are not impacted),” an Amazon spokesman said in an e-mailed 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.

Amazon also plans to

shut down global online bookstore Book Depository

after almost two decades. The British-based bookseller, bought by Amazon in 2011, announced on Wednesday that it will cease operations on April 26.

Business Insider first reported the planned change in the company’s pay structure and said Amazon will re-evaluate 2025 compensation in the first quarter of next year to “plan for stock variation”.

The company is 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 spokesman said.

Amazon’s shares have gained more than 20 per cent this year, following a near 50 per cent tumble in 2022. REUTERS