Amazon decided that there will be 0 hike for L6+ even if they worked really hard and received the top rating. In other words a 'coaster' and a 'burned-out high-performer' will have the same fate. Based on the number of L6+ employees and average base hike, Amazon will save just between 100-150 Million Dollars. The reason that was given was Stock rise which actually increased due to hard work of Amazon employees. So instead of rewarding them, Amazon decided to not appreciate any of this hard work. Similar situation at Meta and Nvidia, where stock rose even higher. But the CEOs decided to given extra bonus (Meta gave 50% additional bonus and Nvidia gave additional RSUs). A company that made 30 Billion+ in profit in 2023 is trying to squeeze 100 Million$ from employees. Just cancel one of your Amazon Prime show and you can easily save that much amount of money. But looks like the leadership don't want to upset Bezos Hollywood friends.
Amazon understands the talent market better
Same shit for us. They decreased equity budget and are implementing a “performance culture” which basically means high performers get same or smaller refreshers than before and low performers get nothing
0 base hike != 0 hike
Should be some refreshers but at stupid stock price
You're a fool if you think working hard will get you more pay at any of these companies.
At Meta and other performance companies it absolutely does. I pay high performances so much most people get shocked lol.
There's a difference between working hard and working to get impact. You can achieve high impact results and performance without working 60 hours a week. 60-80 hour working weeks alone will not get you any additional pay with no impact to revenue.
It's cyclical. Just wait until the market heats up and pick the better opportunity.
Amazon is only the sick now (pip) no more carrots (🍌)
The math is that paying less helps increase profit. Amazon's profit margin is razor thin, they aren't super profitable like tech companies so cannot be paying out big money. That's why they have a cap ok cash comp and always have.
Sure, losing 10 Billion on Alexa and another couple of Billions on stupid Prime Video is OK. And entire company is not Amazon retail where the margins are low.
It kinda is though. Net profit margin is 6.25% and that's one of their best ever. Apples is 28%. The delt is massive.
They are trying to optimize the cash flow. For L6+ base salary increment won't matter much anyway since the majority of their TC relying on stocks. Eventually the L6+ will be the one who benefits the most from this decision.
That's not unique to Amazon. Other companies even given higher refreshers to L6+ folks. But no one has stupid rule of looking back how much you are making.
Employer’s market
Or so they hope.