Amazon (AMZN) Stock: Company to Cut 14,000 More Jobs Starting Next Week

TLDR

• Amazon prepares to cut another 14,000 corporate positions next week, bringing total reductions to 30,000 workers
• Layoffs target AWS, retail, Prime Video, and HR teams as part of effort to reduce management bureaucracy
• CEO Andy Jassy attributes cuts to excess layers from rapid growth, not financial pressures or AI automation
• Total cuts represent nearly 10% of Amazon’s corporate staff but less than 2% of overall 1.57 million workforce
• Analysts maintain Strong Buy rating with 26% projected upside despite largest layoff cycle in company history

Amazon is set to eliminate roughly 14,000 more corporate jobs beginning next week. This second wave brings the company’s total workforce reduction to approximately 30,000 employees.

Amazon.com, Inc., AMZN

The online retail giant already cut 14,000 white-collar positions in October. The upcoming round is expected to match that scale and could start as soon as Tuesday, according to sources familiar with the plans.

Multiple divisions will feel the impact. Amazon Web Services, retail operations, Prime Video, and the People Experience and Technology department will all see job losses. An Amazon spokesperson declined to comment on the reports.

This represents the largest layoff event in Amazon’s history. The company previously eliminated 27,000 roles across multiple rounds in late 2022 and early 2023.

The Numbers Behind the Cuts

Amazon’s corporate workforce includes around 350,000 employees. The 30,000 planned cuts equal roughly 8.5% of that group.

But the company’s total workforce paints a different picture. With 1.57 million employees including warehouse and logistics staff, the reductions represent less than 2% company-wide.

Amazon experienced explosive growth between 2017 and 2022. That expansion created multiple management layers the company now wants to remove.

AI Investment vs. Job Cuts

Speculation continues about AI’s role in the layoffs. Software engineers faced heavy cuts in Washington state last year, fueling theories about automation replacing workers.

Jassy rejects that narrative. However, he previously stated he expects Amazon’s corporate workforce to shrink over time due to AI efficiencies.

Market Outlook Remains Positive

Wall Street isn’t worried about these job cuts. Analysts see bigger factors driving the stock’s future performance.

The real focus sits on Amazon’s February 5 earnings report. AWS performance will be critical, particularly around AI-driven demand growth.

Analyst sentiment stays strong. The consensus rating is Strong Buy with 46 of 47 analysts recommending purchase. Only one analyst holds a Hold rating.

The average price target reaches $294.45. That suggests approximately 26% upside from recent trading levels.

Workers affected by October’s cuts received 90 days of payroll while searching for internal positions or external opportunities. That period ends Monday, just as the next wave arrives.

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