Amazon to Slash Employee Stock Awards Amidst Cost-Cutting Measures

Amazon to Slash Employee Stock Awards Amidst Cost-Cutting Measures

Amazon is planning to reduce stock awards for its employees, following a round of layoffs last year. The tech giant had previously announced in October 2020 that it was cutting 1,000 jobs in its consumer business in the US. Now, according to sources familiar with the matter, Amazon is planning to reduce stock awards for remaining employees by 10% to 20% in order to save costs.

Stock awards are a significant part of Amazon’s compensation package for employees, and are seen as a way to retain talent and incentivize high performance. However, the reductions in awards are not expected to impact all employees equally. Higher-level employees and executives are likely to see smaller reductions, while those in lower-level positions could see reductions of up to 20%.

The move to reduce stock awards comes as Amazon faces increased scrutiny over its treatment of workers. In recent years, the company has been criticized for working conditions in its warehouses and for its treatment of delivery drivers. Last year, the company faced a high-profile unionization effort at one of its warehouses in Alabama, which ultimately failed.

Amazon’s cost-cutting measures have also affected other areas of the company. In addition to the layoffs in its consumer business, the company also announced in December 2020 that it was closing its Prime Pantry service, which allowed customers to buy household essentials in bulk. The closure was part of a broader effort by the company to streamline its operations and cut costs.

Despite the cuts, Amazon has continued to grow during the pandemic, as more people turn to online shopping. The company reported $386 billion in revenue in 2020, up from $280 billion the previous year. However, the company’s profits have been impacted by the increased costs associated with the pandemic, including investments in safety measures for workers.

Amazon has not commented on the reports of the planned reductions in stock awards. However, the move is likely to be unpopular with employees, who have already seen their workload increase during the pandemic. It remains to be seen whether the reductions in stock awards will have any impact on the company’s ability to retain top talent or incentivize high performance among its remaining employees.

This Article Inspired From Here