After layoffs, Amazon now plans to trim employee stock awards
Amazon.com Inc. laid off about 100 employees in its video-game divisions as part of its broader cutbacks, affecting workers at Prime Gaming, Game Growth and the company’s San Diego studio.
After a second round of mass layoffs at Amazon Inc, the e-commerce giant would now reduce employee stock awards as the company navigates an uncertain economy, the spokesperson said in an official statement without specifying the period of the final outlook year.
"We made the decision to reduce RSU (restricted stock units) awards in the final outlook year by a small amount (other years are not impacted)," an Amazon spokesperson said as quoted by Reuters.
The news comes weeks after Amazon announced a second round of mass layoffs, piling on to a wave of job cuts that have swept the technology sector as a rough economy forces companies to get leaner.
Business Insider had first reported the planned change in the company's pay structure and said Amazon would reevaluate 2025 compensation in the first quarter of next year to "plan for stock variation".
“The company was 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 spokesperson said.
Amazon.com Inc. laid off about 100 employees in its video-game divisions as part of its broader cutbacks, affecting workers at Prime Gaming, Game Growth and the company’s San Diego studio.
“Our resources will be aligned to support our focus on content," Games Vice President Christoph Hartmann wrote in a memo to employees Tuesday.
“Going forward, we will continue to invest in our internal development efforts, and our teams will continue to grow as our projects progress."
Amazon has struggled to capitalize on its resources in gaming, including through its Crown channel, an entertainment show on the Twitch streaming service.
The company's shares have gained more than 20% this year, following a near 50% tumble in 2022.
(With Reuters inputs)
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:6 Apr 2023, 07:38 AM IST
- Top Gainers
- Top Losers
- 52 Week High