• Amazon reportedly plans to reduce 30,000 roles, impacting about 9.4% of its corporate workforce.
• The job cuts will begin on Tuesday.
• Amazon hasn’t officially announced the move, and details could be shared at its quarterly report on Thursday.
  

Amazon.com, Inc.’s shares jumped 1.2% on Monday and gained further in the extended session after Reuters reported that the e-commerce and cloud giant will kick off a significant retrenchment this week.

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Amazon plans to lay off 30,000 corporate employees starting Tuesday, the news agency reported, citing three people familiar with the matter. This would be the company’s largest downsizing since late 2022, when it announced 27,000 job cuts.

Amazon did not respond to a Stocktwits query. Details might be announced at the company’s third-quarter results on Thursday.

Continuing Downsizing

Although Amazon has been selectively cutting staff in the last two years in units like devices, Alexa, and human resources, the latest plan suggests a bigger push to rein in costs and correct the overhiring during the pandemic. Microsoft announced a 3% workforce reduction in June.

The size of the rumored job cuts is a small percentage of Amazon’s 1.55 million-strong workforce, but a sizable 9.4% of its roughly 350,000 corporate employees. The reported move comes as CEO Andy Jassy has been pushing to fix what he sees as excess bureaucracy in the company, including by reducing the number of managers.

What Do Retail Investors Think?

On Stocktwits, the retail sentiment for AMZN shifted to ‘bullish’ as of late Monday from ‘neutral’ the previous day, with several users upbeat about the development. 

“The company is focusing on margin protection. Short term: balance sheet relief,” said one user.

Amazon is currently navigating the impact of headwinds from U.S. tariffs on its mainstay e-commerce business while investing in AI capacity to grow its cloud business. Despite healthy results last quarter, the stock has underperformed this year, raising investor concerns.

AMZN shares are up 3.5% year-to-date, the worst performer among the Magnificent Seven stocks and underperforming the benchmark S&P 500 and Nasdaq indices. Notably, the stock has gained in the last three sessions and was trending at number three on Stocktwits at the time of writing.

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