It's certainly a reduction because, until very recently, Amazon had a maximum salary number that was quite low. Therefore, stock was used to achieve parity with market rates. However the stock was issued under the assumption that it would mostly hold its value, which has been untrue for the past year.

This is no different from GS and other finance companies paying out a large chunk of the compensation in 'bonuses'. If they decide to cut the 'bonuses', employees no longer have market parity and it's effectively a pay cut for them.

Of course people should be cautious about picking companies that structure compensation this way, but the expectation that has built up over the years is that the stock is as good as actual cash. Perhaps that expectation will be reset as a result of these mass layoffs at these companies.