Analysts believe these changes could influence Amazon stock price ahead of its upcoming Q3 earnings report. The company is also investing €1.4 billion in the Netherlands to strengthen Amazon Web Services (AWS) and logistics operations, further boosting investor confidence in Amazon stock price.
Amazon stock price and new corporate job cuts
Amazon stock price rose on Monday after reports suggested that the company is planning to eliminate as many as 30,000 corporate jobs starting Tuesday. According to Reuters, the decision is part of Amazon’s broader effort to reduce expenses and adjust for overhiring during the pandemic.
The reported layoffs will impact nearly 10% of Amazon’s corporate workforce of around 350,000 employees. This will mark the largest round of job cuts since late 2022, when approximately 27,000 roles were eliminated.
Amazon stock price impact and restructuring process
The total number of planned layoffs may vary depending on Amazon’s financial goals in the coming months. The company has already conducted smaller job reductions across several divisions, including devices, communications, podcasting, and operations.
Sources familiar with the matter said that the upcoming layoffs will affect human resources, known internally as People Experience and Technology, as well as devices, services, and other departments. Managers were reportedly trained on Monday on how to communicate these decisions to affected employees before notifications are sent out by email on Tuesday morning.
Amazon CEO Andy Jassy’s strategy and focus on efficiency
Amazon CEO Andy Jassy has been leading a company-wide effort to reduce what he described as excess bureaucracy. He has emphasized the need to streamline management layers and improve operational efficiency. Earlier this year, Jassy introduced an anonymous feedback system to identify inefficiencies within Amazon. The initiative generated around 1,500 employee responses and resulted in over 450 process changes.
In June, Jassy also noted that artificial intelligence tools could replace repetitive tasks, potentially leading to more job reductions. His focus on AI and automation is now a core part of Amazon’s restructuring strategy.
Amazon stock price movement before earnings report
Amazon shares increased by 1.2% to $226.80 on Monday afternoon. The company is set to report its third-quarter earnings on Thursday. Analysts are paying close attention to how cost-cutting measures and AI investments will affect Amazon stock price and future performance.
Over the past week, Amazon stock price rose 4.8%, bringing its year-over-year gain to 20.8%. The rise came as the company expanded its AI and robotics programs, positioning itself to improve logistics and retail operations globally.
New AI technologies and future investments
Amazon recently introduced two new technological projects — Blue Jay and Project Eluna — to enhance warehouse operations and coordination systems.
Blue Jay is a robotic coordination system that works alongside humans, while Project Eluna is an agentic AI model designed to support warehouse decision-making in real time. Tye Brady, Amazon Robotics’ chief technologist, said that these technologies aim to make operations safer and more efficient for employees.
Both initiatives are part of Amazon’s “physical AI” strategy, which uses technology that learns from real-world interactions to improve performance. These tools build upon earlier projects named Vulcan and DeepFleet.
Amazon expands operations in Europe
On October 27, Amazon announced a €1.4 billion investment in the Netherlands over the next three years. This is its largest commitment to the country since 2020. The funding will support Amazon Web Services (AWS) infrastructure, technology upgrades, and logistics.
Following the announcement, Amazon stock price rose by 1.6% on October 27. Analysts remain optimistic about Amazon’s Q3 earnings, expecting growth driven by new AI initiatives and expansion in Europe.
Despite a 1.9% decline in the company’s stock during the quarter, market experts expect the overall trend to stay positive as Amazon continues its technology-driven cost reduction efforts.
FAQs
Q1: Why is Amazon cutting 30,000 corporate jobs?
Amazon is cutting 30,000 jobs to reduce costs, address overhiring during the pandemic, and streamline operations using artificial intelligence and automation tools.
Q2: How is Amazon stock price affected by these changes?
Amazon stock price rose following news of job cuts and new AI investments, reflecting investor confidence in the company’s cost-cutting strategy and upcoming Q3 earnings.
The post amazon job cuts: Amazon stock price rises as company plans 30,000 corporate job cuts and expands AI, robotics investments. Here’s restructuring process, impact on share price, CEO Andy Jassy’s strategy and focus on efficiency appeared first on Veritas News.
