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Amazon workers face pay cut after steep stock reduction
https://www.whatjobs.com/news/usa/us-business-news/amazon-workers-face-pay-cut-after-steep-stock-reduction
By Nithya Bose in Amazon News, posted February 21, 2023
Amazon employees are facing a significant cut to their pay packages because of a sharp reduction in stock over the past year.
The projected pay cut for 2023 is between 15 and 50 percent less than the target compensation.
Corporate staffers at Amazon get a large portion of their annual salaries in restricted stock units but now face a big reduction in their earnings.
The Seattle giant has historically paid smaller base salary to staff than its Big Tech competitors.
Read More: Amazon asks staff to work in the office at least three days a week
Their pay has been counterbalanced with stock awards.
Staffers say the longer they work for the company, the more their salary can depend on stock awards.
For some, stocks contribute to 50 percent or more of their total income.
Amazon's shares has dropped more than 35 percent in the last year, owing to a broader technology slump and slower growth on its retail business.
Read More: Amazon starts its largest ever layoffs which will lead to 18,000 job cuts
Sources said when restricted stock units are granted, Amazon's shares are likely to increase by at least 15 percent annually.
Amazon lifted the cash component of Amazon compensation from $160,000 to $350,000 last year amid a talent war and a falling stock price.
Sources said the company intends to give hikes from one to four percent this year.
Amazon is going through one of its most difficult financial periods in its history.
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In November, it launched the largest wave of layoffs the company has ever taken, and by January, Amazon axed 18,000 corporate jobs.
Major tech companies, including Alphabet, Meta, and Microsoft, have laid off employees in thousands recently.
Since the start of the year, more than 107,000 people in the tech sector have lost jobs.
In addition to terminating current employees, Amazon also canceled job offers from several candidates.
It is mainly those who had accepted them and hadn’t yet joined, and postponed the start date for some incoming college hires by six months.
Source: The Wall Street Journal
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