Amazon Plans to Lay Off 30,000 Employees Amid AI Impact Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12m ago
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Source: Benzinga
- Layoff Plan Expansion: Amazon has announced a second wave of layoffs, potentially affecting around 30,000 employees, or 9% of its corporate workforce, aimed at enhancing operational efficiency and adapting to market changes.
- Challenges in Discussing AI Impact: Gene Munster from Deepwater Asset Management highlighted that executives face difficulties in discussing AI's impact on jobs, as acknowledging this could undermine employee morale and create anxiety.
- Industry Layoff Trend: The surge in layoffs across major firms like Citigroup and Tesla indicates a shift away from traditional job stability, with warnings that nearly 100 million Americans could be displaced by AI and automation over the next decade.
- Cultural Transformation Context: Amazon CEO Andy Jassy stated that the layoffs are not solely driven by AI but are part of a cultural shift towards a leaner, more agile organization, reflecting broader industry trends in workforce management.
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: 234.340
Low
250.00
Averages
294.69
High
340.00
Current: 234.340
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.
