According to Business Insider reports, an American multinational technology company, Amazon corporate is likely to cut the salary of some employees by 50 percent.
Amazon Chief Executive Andy Jassy said, “The result is that compensations are impacted. And that is difficult. All of that is difficult.”
“But I am quite optimistic that we have the chance to emerge from this challenging time in a relatively stronger position than when we entered it,” Andy Jassy added.
The stocks of Amazon have declined by 35% declined this year. According to the report, this will result in a reduction in the salaries of the employees by 15% to 50%.
Amazon earlier also announced the sacking of more than 18,000 employees which was 80% more employees than previously planned. The company has also stopped corporate hiring.
Additionally, economic uncertainty has led to a really difficult time leading to job cuts, and an impact on stock prices.
Recently, Amazon also asked employees to be in the office at least three days a week from May 1. In a recent post on Amazon’s blog, chief executive Andy Jassy wrote the decision that was taken at a meeting. However, The CEO said the company has not finalized the details of the policy yet.
Earlier, Amazon delayed the joining dates for some university graduates until the end of 2023 due to cost-cutting efforts. Earlier, The onboarding of the employees was expected to be completed by May 2022.
The company froze hiring in September 2022. In October 2022, the company stopped hiring for more than 10,000 open roles in its core retail business.
Amazon from April- September 2022 reduced its headcount by almost 80,000 people. The company employs more than 1.5 million employees globally, which includes hourly staff as of September meaning the latest cuts would represent about 1% of the workforce. The company also shut down its three businesses in India.