© Reuters. Amazon logo at the logistics center in Mannheim, Germany 09/17/2019 REUTERS/Ralph Orlowski
(Reuters) – Amazon.com Inc (NASDAQ:) is reducing the number of shares it plans to give employees as part of their compensation in 2025, Business Insider reported on Wednesday, citing a memo.
The economic climate and the company’s budget were the reasons behind the reduction in stock-based compensation in 2025, called restricted stock units (RSUs), Amazon told managers, according to the report.
The memo cited by Insider also mentions a possible change to Amazon’s pay model, which would give employees more money, which could offset any potential weakness in its share price.
The company did not immediately respond to a Reuters request for comment.
Amazon will re-evaluate compensation for 2025 in the first quarter of next year in order to “plan for the swing of the action,” Insider said, citing another internal document.
Last month, the company announced it would cut another 9,000 jobs, joining the wave of mass layoffs that has swept the tech sector as an uncertain economy forces companies to become leaner.
(Reporting by Arunima Kumar in Bengaluru)