Amazon shrinks raises for workers after software glitch miscalculates bonuses

0
19

[ad_1]

Amazon recently made salary packages for some promoted corporate employees more attractive than they should have been after discovering an internal glitch.

Amazon brass delivered bad news to managers in Thursday’s email obtained by insider, Managers were told that the affected employees received more bonuses than they should have because the payments were mistakenly calculated based on old Amazon stock prices.

It’s not clear how many Amazon employees are getting paid less than they initially expected after the promotion. But an internal IT ticket related to the software glitch suggested that about 40% of employees promoted in the current quarter have been “affected by the issue”, according to the insider.

When reached for comment, Amazon spokesman Brad Glasser confirmed that the incident had occurred.

“We have identified and promptly corrected an issue with the compensation communications of some newly promoted employees,” Glasser said in a statement. “We are working with employees to make sure they understand their updated compensation.”

Jeff Bezos
With the outflow of funds from the company, the personal wealth of Amazon founder Jeff Bezos has suffered a major setback.
AP
Amazon Office
Amazon stock is down about 33% this year.
Getty Images

Amazon shares have fallen about 33% since the start of the year — a decline that roughly matches that of the Nasdaq Composite Index over the same period. High-cap tech stocks have struggled this year during Federal Reserve rate hikes, and recession fears continue to plague the sector.

In an email to managers, Amazon acknowledged that due to the recent stock meltdown and glitch, “it’s likely that the promotional cash value your employee is now receiving is less than what was originally discussed with them.”

“We believe this to be an uncomfortable conversation,” the email said.

Andy Jassi
Amazon CEO Andy Jesse recently said that the company will slow hiring.
Getty Images for Vox Media

The glitch comes as Amazon and other tech companies attempt to navigate a deteriorating financial outlook following a surge in share prices during the COVID-19 pandemic.

Some firms including Meta And Google has slowed hiring, indicated layoffs or implemented other cost-cutting measures — and ranked employees in process,

Amazon CEO Andy Jesse recently indicated that the company would continue to hire, but at a much slower pace than in the past few years.

“I don’t think you’ll hire us at the same rates that we did,” Jassi said during an appearance at the Code conference earlier this month. wall street journal, “But we’ll keep working.”

[ad_2]

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here