E-commerce giant Amazon (AMZN) is widely expected to cut an additional 14,000 jobs ahead of its next financial results being issued on Feb. 5.
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The job cuts are expected to target Amazon’s corporate workers who were subject to a similar round of layoffs last autumn. At that time, management at Amazon said they were planning a total of 30,000 job cuts to the company’s corporate staff.
The latest workforce reduction continues a trend at Amazon, which eliminated 27,000 jobs in 2022 and 2023. The latest cuts are aimed at reducing layers of management and would represent about 10% of Amazon’s corporate staff, with the rest of its 1.58 million employees working in warehouses.
Amazon’s Automation Push
The cuts, which could begin as soon as Tuesday, are expected to affect Amazon Web Services, retail, Prime Video, and human resources.
White-collar jobs
In October, Amazon employees were told they would remain on the payroll for 90 days, and could apply for jobs internally or seek other employment during that time, with the period ending on Monday.
In 2017, Amazon employed only a fraction of its current workforce, with about 541,000 people following the acquisition of Whole Foods, and was already the second-largest US-based company by headcount, after Walmart.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 47 Wall Street analysts. That rating is based on 46 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $294.93 implies 27.34% upside from current levels.
