Amazon to Lay Off 14,000 Employees, Driven by AI Efficiency
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: stocktwits
- Expanded Layoffs: Amazon plans to lay off 14,000 employees, adding to the previous 14,000 cuts from October, indicating a significant organizational streamlining driven by AI technology.
- Significant AI Impact: Although CEO Andy Jassy claims the layoffs are not financially or AI-driven, analysts highlight that AI is a crucial factor in the company's decision to become leaner, reflecting executives' sensitivity to AI's impact on the workforce.
- Industry Trend: Citigroup is also set to continue layoffs in 2026, demonstrating that efficiency gains from technological advancements are prompting more companies to reorganize to meet current business needs.
- Employment Market Warning: Analysts warn that AI could lead to an unemployment rate as high as 10%, with Microsoft co-founder Bill Gates cautioning that AI will significantly disrupt fields like software development, with impacts expected to intensify over the next five years.
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.
