Amazon Plans to Cut 30,000 Jobs Impacting Retail and AWS Units
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: stocktwits
- Layoff Plans: Amazon is set to initiate a second round of layoffs next week, targeting approximately 30,000 positions across its retail, AWS, and human resources divisions, indicating a strategic shift in response to economic pressures.
- Historic Layoffs: This round of layoffs will mark the third-largest in Amazon's history, representing only 2% of its 1.58 million employees but nearly 10% of its corporate workforce, reflecting the company's commitment to structural optimization.
- Previous Layoff Impact: In October, Amazon laid off 14,000 white-collar workers, with affected employees given 90 days to seek internal positions or external employment, demonstrating the company's concern for its workforce during this transition.
- Market Reaction: Despite the layoff news, Amazon's stock has risen by 1% over the past 12 months, indicating market confidence in the company's long-term prospects, even as retail sentiment remains neutral.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 231.310
Low
250.00
Averages
294.69
High
340.00
Current: 231.310
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
