Amazon Layoffs: Retail Giant To Slash 14000 Jobs

• In June, CEO Andy Jassy had said that there would be a reduction in the total corporate workforce as the company rolls out more generative AI and agents.
• Galetti said this generation of AI is the most transformative technology since the internet, enabling companies to innovate much faster than ever before.
• UBS on Tuesday raised its price target on Amazon to $279 from $271 and maintained a ‘Buy’ rating, according to TheFly.

Amazon.com (AMZN) announced on Tuesday in a blog post that it would reduce its corporate workforce by about 14,000 roles, building on a recent slew of job cuts the company has planned to save costs and increase investment in artificial intelligence.

“We’re working hard to support everyone whose role is impacted, including offering most employees 90 days to look for a new role internally and our recruiting teams will prioritize internal candidates to help as many people as possible find new roles within Amazon,” said Beth Galetti, Senior Vice President of People Experience and Technology at Amazon.

Galetti said this generation of AI is the most transformative technology since the internet, enabling companies to innovate much faster than ever before. She added that Amazon was convinced the company needed to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for its “customers and business.”

Shares of Amazon rose nearly 1% in premarket trading. Retail sentiment on the stock remained unchanged in the ‘neutral’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits.

Andy Jassy’s Take

Last year, CEO Andy Jassy said that as the company’s teams grew quickly and substantially, it added many managers and, in the process, more layers than before. “It’s created artifacts that we’d like to change … So, we’re asking each s-team organization to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025,” he added.

Jassy then noted that having fewer managers would remove layers and flatten organizations, increasing teammates’ ability to move fast and decreasing bureaucracy.

In June, he had said that there would be a reduction in the total corporate workforce as the company rolls out more generative AI and agents. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," said Jassy.

Job Cuts Come Ahead Of Q3 Results

Amazon is expected to post its third-quarter results on Thursday, with Wall Street estimating a revenue of $177.76 billion and earnings per share of $1.57, according to data from Fiscal AI.

UBS on Tuesday raised its price target on Amazon to $279 from $271 and maintained a ‘Buy’ rating, according to TheFly. The firm expects some "noise" in third-quarter reported operating income, and its headline operational intelligence guidance may be below consensus.

The firm believes focus will likely be on the reported AWS growth rate, with expectations at 18% year over year, with prospects for greater acceleration shifting into the fourth quarter and 2026.

Shares of Amazon have risen by over 3% this year and by 20.5% over the last 12 months.

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