Amazon tells employees that a software bug miscalculated their pay

face palm: Imagine getting a promotion and learning that you’ll receive a sizable compensation, only for the company to inform you that the new package isn’t as generous as expected due to a software bug. About 40% of Amazon’s employees who were promoted in the current quarter face this situation.

Amazon confirmed the bug in an email Insider sent to managers. The problem was due to a one-time bonus for newly promoted employees, which was calculated using historical Amazon stock prices that were higher than their current value.

How many employees will now use their bonus to buy something cheaper is unknown, although an internal trouble ticket says about 40% of people promoted in the quarter were affected by the issue.

“We identified an issue with some newly promoted employees’ compensation communications and fixed it immediately,” an Amazon spokesperson told Fortune. “We are working with employees to ensure they understand their updated compensation.”

Amazon’s share price started the year at over $170. Like most big tech companies, it has plummeted over the past nine months and is now at $113. Insider writes that an Amazon employee pointed this out in an internal Slack group last week, noting that the “stock keeps going down every day” and that Amazon is “taking away something that has kind of made us whole.”

The email to managers said: “It is likely that the cash value of the promotion your employee is now receiving is lower than what you initially discussed with them.” It adds that it is a “difficult” Talk will be to inform the newly promoted employees why they are not getting what they expected, which is probably an understatement.

There is a lot of competition for corporate employees in the technology sector. As the company tried to retain its employees and attract new employees, Amazon increased the maximum base salary it pays its employees to $350,000 from $160,000 in January.

Amazon’s warehouse workers are unlikely to feel any sympathy for the company’s employees who aren’t being paid as much as they expected. CEO Andy Jassy laughed at the idea of ​​the former group being paid $25 an hour last month, claiming Amazon can’t afford it and the company needs to run a sustainable business. He also said there were no plans to bring company employees back to the office.

https://www.techspot.com/news/96098-amazon-tells-staff-software-error-miscalculated-their-compensation.html Amazon tells employees that a software bug miscalculated their pay

Chris Barrese

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