Amazon Plans to Lay Off 30,000 Workers, Saving $4 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Layoff Plan: Amazon anticipates laying off 30,000 employees in 2026, which could save the company up to $4 billion assuming an average salary of $133,062 per worker, significantly enhancing profitability.
- AI Technology Utilization: By developing its custom chips like the Graviton4 series, Amazon is improving its AI infrastructure, which not only boosts internal operational efficiency but also potentially reduces costs associated with AI training and inference, thereby strengthening its competitive edge.
- Market Share Growth: Amazon's partnership with large language model developer Anthropic, in which it holds 15% to 19% equity, is expected to generate non-cash income as Anthropic gains popularity among enterprise clients, enhancing Amazon's financial performance.
- Investment in Robotics: Amazon plans to implement robotics in its warehouse operations to reduce reliance on human labor, potentially avoiding the need to hire 500,000 workers by 2033, which will lower operational costs and address challenges related to high employee turnover rates.
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 294.71 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.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 246.290
Low
250.00
Averages
294.71
High
340.00
Current: 246.290
Low
250.00
Averages
294.71
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.
