Many of Amazon's corporate employees who just got promoted are finding that because of a software error, their raise packages actually won't be as high as they thought, according to an email seen by Insider that was sent to managers on Thursday.
The glitch caused Amazon to overstate bonuses for recently promoted employees because it miscalculated compensation by relying on older, higher stock prices for Amazon shares, the email said. It's not clear exactly how many employees were affected, but an internal trouble ticket seen by Insider said roughly 40% of employees promoted this quarter had "been impacted by this issue."
The company resolved the glitch Tuesday. Still, when employees learned they would make less than they thought, it reinforced a sense among some that the company was nickel-and-diming them, according to screenshots of Slack messages seen by Insider.
Amazon employees have expressed increasing dissatisfaction with compensation over the past year amid a perception that they're paid less than peers in the tech sector. In response, Amazon nearly doubled its base pay cap and promised raises earlier this year, but that wasn't enough to quell all the unrest.
One Amazon employee wrote in an internal Slack channel Thursday morning in response to learning about the glitch that as "stock continues to tank every day," Amazon was "taking away something that somewhat made us whole."
Amazon's share price has fallen 28.2% in the past six months. Because of the error, "it is likely that the promotional cash value your employee will now receive is lower than you originally discussed with them," the email to managers said. "We recognize that this is an uncomfortable conversation to have."
In a statement, an Amazon representative, Brad Glasser, said the company "identified and immediately corrected an issue with some newly promoted employees' compensation communications."
"We are working with employees to ensure they understand their updated compensation," Glasser added.
Do you work at Amazon? Got a tip? Contact reporter Katherine Long via phone or the encrypted messaging app Signal (+1-206-375-9280), or by email (klong@insider.com).
