Amazon Plans To Trim Employee Stock Awards After Layoffs

(CTN News) – There has been a second round of mass layoffs at Amazon Inc. today, and the e-commerce giant has announced that it is reducing employee stock awards as it navigates through an uncertain economy, the spokesperson said in an official statement without specifying how long the final outlook period will cover.

An Amazon spokesperson was quoted by Reuters as saying, “We have decided to reduce RSU award (restricted stock units) awards by a small amount in the final outlook year (other years will not be affected by this decision).”

As a result of a difficult economic climate, companies have been forced to get leaner and more efficient, which has led to the announcement of mass layoffs,

Following Amazon’s announcement of a second round of mass layoffs a few weeks ago.

Business Insider reported first on the change in Amazon’s pay structure and said that the company would reevaluate 2025 compensation in the first quarter of next year to “plan for stock variations” as part of the changes to the company’s pay structure.

According to the spokesperson, as a result of the combination of an uncertain economy and the company’s compensation budget, it was contemplating making adjustments to its compensation model in the future to ensure a more balanced mix of base cash compensation and equity compensation.

It is estimated that Amazon.com Inc. lay off about 100 workers in its video-game divisions as part of its broader restructuring efforts. The company’s San Diego studio and Prime Gaming division were affected.

According to a memo sent to employees on Tuesday by Games Vice President Christoph Hartmann, the company’s resources will be aligned to support the company’s focus on content.

As we move forward, we will continue to invest in our internal development efforts, and we will ensure that our teams will continue to grow and develop as our projects progress.”

There has been a struggle for Amazon to capitalize on its gaming resources, even with the help of its Crown channel, an entertainment show on the Twitch streaming platform.

In the second half of this year, the shares of the company have gained over 20% following a nearly 50% drop in 2022.

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