Amazon job cuts on Tuesday heavily impacted early to mid-level managers in the retail division, according to internal data obtained by Business Insider. Some employees are now worried Amazon Web Services could be next. More than 78% of the roles eliminated on Tuesday were held by managers assigned L5 to L7 designations, the internal data obtained by BI showed. This data focuses mostly on US operations. L5 is typically the starting point for managers at Amazon, with more seniority assigned to higher levels. ...

Core Insights - Amazon is expected to implement the largest corporate job cuts in its history, with plans to cut 14,000 corporate roles, potentially rising to 30,000, which would surpass the previous cuts of 27,000 jobs in 2022-2023 [2][4] - Major tech companies like Amazon and Alphabet are investing heavily in generative AI infrastructure while simultaneously reducing their workforce [2][4] - The trend of job cuts is part of a broader strategy to streamline operations and reallocate resources towards AI development, with companies aiming to flatten organizational structures for quicker decision-making [5][9] Company-Specific Developments - Amazon's CEO Andy Jasse indicated that generative AI will lead to a reduction in workforce, with internal documents suggesting plans to automate 75% of warehouse operations, potentially avoiding the need for 600,000 new hires [5][6] - The job cuts at Amazon reflect a wider trend in the tech industry, where companies like Meta and Microsoft have also reduced their workforce while investing in AI talent and infrastructure [3][4] Industry Trends - The tech industry is experiencing a significant shift towards automation and AI, leading to a reduction in middle management roles as companies seek to enhance efficiency and expedite decision-making processes [8][9] - The current landscape indicates a dual approach where companies are scaling back on headcounts while increasing capital expenditures to support AI initiatives, highlighting a transformation in workforce dynamics [5][6]

Core Insights - Amazon is set to report third-quarter 2025 results on October 30, with expected net sales between $174 billion and $179.5 billion, reflecting a growth of 10-13% year-over-year, despite a negative impact of approximately 130 basis points from foreign exchange rates [1] - The Zacks Consensus Estimate for third-quarter earnings is $1.58 per share, indicating a growth of 10.49% from the previous year [2] Financial Performance - Current estimates for third-quarter earnings per share have shown a slight upward trend, with the latest estimate at $1.58 compared to $1.54 three months ago [3] - Amazon has a strong earnings surprise history, with a 26.32% surprise in the last quarter and an average surprise of 22.98% over the last four quarters [6] Business Segments and Growth Drivers - Amazon's e-commerce and cloud markets are benefiting from strong performance, with AWS revenues projected to grow 18.4% year-over-year to $32.49 billion, driven by AI infrastructure investments [9][11] - The advertising business generated $15.69 billion in the second quarter of 2025, representing a 23% year-over-year growth, supported by new innovations and expanded capabilities [14][15] - The online stores segment is estimated to generate $66.3 billion in revenues, reflecting an 8% year-over-year increase, aided by enhanced product discovery tools and AI features [21][22] Strategic Initiatives - Amazon's Prime Day event in July 2025 resulted in record sales, with U.S. e-commerce sales reaching $24.1 billion, showcasing strong momentum [16] - The company expanded same-day grocery delivery to over 1,000 cities, integrating thousands of perishable items into its delivery network, which is expected to enhance customer engagement and competitive positioning [19][20] Market Position and Valuation - Amazon's shares have gained 3.6% year-to-date, underperforming compared to the broader Zacks Retail-Wholesale sector and the S&P 500 index [23] - The company is trading at a forward 12-month price-to-sales ratio of 3.14X, indicating a premium valuation compared to the industry average of 2.23X [27] Investment Thesis - Amazon presents a compelling buy opportunity ahead of its earnings report, driven by strategic initiatives in AWS, advertising, and grocery expansion, which are expected to support long-term shareholder value creation [30] - The convergence of multiple growth engines, including cloud computing, digital advertising, and e-commerce innovation, positions Amazon for robust growth [31]

Core Insights - Amazon is undergoing significant layoffs in its video game development and publishing divisions, particularly affecting its studios in San Diego and Irvine, as part of a strategic reevaluation of its gaming business [1][6] - The company has decided to halt a substantial portion of its first-party AAA game development, especially in the MMO segment, which reflects a broader shift in strategy within Amazon Games [1][6] - The recent launch of Luna, Amazon's new gaming platform, emphasizes a focus on streaming entertainment and delivering value to Prime members, indicating a pivot towards integrating gaming with Amazon's broader service offerings [3][5] Company Strategy - The company is critically assessing the evolving dynamics of the gaming industry and competitive landscape, leading to the decision to reduce roles in its game studios and central publishing team [1][6] - Amazon aims to deliver the best gaming experiences while leveraging its strengths, as demonstrated by the launch of Luna with a catalog of social party games and AAA titles [5][6] - Despite the cuts, Amazon continues to develop games, with ongoing projects like March of Giants and collaborations with external studios for upcoming titles [7] Impact on Employees - The layoffs are part of a larger corporate restructuring, with notifications already sent to most affected employees, while others will follow local processes [8] - The company acknowledges the difficulty of these changes and the impact on team members who have contributed significantly to its gaming efforts [9]

Core Insights - Amazon plans to cut 14,000 corporate jobs as part of a strategy to streamline operations in response to advancements in AI [1][3] - The job cuts will affect employees in the US, Canada, and Europe, with notifications already sent out [2][3] - Affected employees will receive full pay and benefits for 90 days, along with a severance offer [2] Job Cuts Details - The layoffs will impact various departments including advertising, recruitment, payments, devices, Fire TV, and customer behavior analytics [3] - Audible, Amazon's audiobook and podcast division, is also included in the job cuts, with a focus on critical growth areas [4] - The company has communicated with local works councils in Germany regarding the job cuts [6] Company Performance Context - Despite the company's overall performance, the decision to reduce jobs is attributed to the rapid changes brought by AI [3] - Amazon has a total of 1.55 million employees globally, with the cuts representing about 4% of its approximately 350,000 corporate workforce [11]

Group 1 - Amazon is eliminating 14,000 corporate jobs, approximately 4% of its workforce, as part of a multi-year efficiency drive focused on reducing middle management layers [2][3] - Layoffs will affect various teams, including video games, grocery, HR, communications, ads, and devices, with expectations of further cuts through 2026 [2][3] - If total layoffs reach 30,000, it will mark the largest corporate layoff in Amazon's history, as the company reallocates resources towards data centers and AI infrastructure [3][5] Group 2 - The trend of job cuts is part of a broader industry shift among major tech companies, with significant layoffs reported by Meta, Google, and Microsoft as they invest heavily in AI [4][5] - Amazon has already cut over 27,000 jobs since 2022 and plans to spend more than $120 billion on capital expenditures this year to compete in the cloud sector [5] - Internal documents indicate Amazon aims to automate 75% of its operations by 2033, potentially avoiding the need for 600,000 new warehouse hires [5][6] Group 3 - The current environment suggests that while AI investments are boosting stock prices, they are simultaneously leading to reduced employment levels [6] - Upcoming earnings reports from Amazon and Google are anticipated to reflect increased spending commitments in the AI and cloud sectors, with pressure on consensus estimates for hyperscaler capital expenditures [7] - A recent commercial agreement between Microsoft and OpenAI guarantees $250 billion worth of compute from Microsoft Azure, opening opportunities for Amazon Web Services to compete for OpenAI's business [8]

10/27/2025Justin Nielsen and Alexis Garcia and analyze Monday's market action... INVESTING RESOURCES BREAKING: Stocks Rumble Higher As PayPal, UnitedHealth Rally Apple (AAPL) stock, AAR Corp. (AIR), Broadcom (AVGO), and Datadog (DDOG) all made their way onto today's IBD Screen Of The Day. And all four names are in or near buy zones of first or second-stage bases, which increases the chances of prosperity. Institutional backing is an important element in finding a winning growth stock. Large purchases by mon ...

Core Insights - Amazon is cutting 14,000 corporate jobs as part of a strategic decision to align with CEO Andy Jassy's vision of operating the company "like the world's largest startup" [1][2] - Affected employees will receive full pay and benefits for 90 days, along with a severance package and transitional support [2][7] Employee Transition Support - Employees will have a non-working period during which they will continue to receive full pay and benefits [2][7] - The company will provide access to skills training and external job placement support [2][10] - Communication regarding the transition will be facilitated through meetings with HR representatives and access to internal resources [6][9]

Whales with a lot of money to spend have taken a noticeably bullish stance on Amazon.com.Looking at options history for Amazon.com (NASDAQ:AMZN) we detected 55 trades.If we consider the specifics of each trade, it is accurate to state that 50% of the investors opened trades with bullish expectations and 25% with bearish.From the overall spotted trades, 8 are puts, for a total amount of $430,587 and 47, calls, for a total amount of $2,576,114.Projected Price TargetsTaking into account the Volume and Open Int ...

Group 1 - Amazon is laying off employees at Audible as part of a broader plan to cut 14,000 corporate jobs [1][2] - The CEO of Audible, Bob Carrigan, indicated that affected employees have been notified and further organizational changes will follow to enhance focus and speed in critical growth areas [1][5] - Amazon's strategy aims to streamline operations in response to AI advancements, which are seen as transformative for the company [3][6] Group 2 - The specific number of roles affected at Audible has not been disclosed, and Amazon has not provided additional comments beyond a blog post announcing the cuts [2][3] - Organizational changes will involve shifting roles across various departments to improve collaboration and decision-making speed [5] - The company emphasizes its commitment to supporting impacted employees through HR resources and counseling services [4][6]