Amazon (AMZN) has cut thousands of jobs in the Amazon Web Services cloud computing unit on Thursday, according to a spokesperson. AMZN stock is trading higher on Thursday shortly after the announcement, up 0.26%. “We’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” the spokesperson said in an emailed statement. “These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.”
According to Reuters, Several employees received emails on Thursday morning that told them they had been terminated and their computers were being deactivated. At least hundreds of people were let go, according to two people familiar with the layoffs. However, Amazon has yet to confirm the exact number of those jobs cut, or if there are more coming soon.
Amazon (AMZN) Looks to Rebound After Tough 2025 First Half
Year-to-date, Amazon (AMZN) stock is only up 1.9%. The stock has struggled this year, from Trump’s tariffs to trade wars and the mass stock market meltdown. Despite the odds, its valuation holds up and remains a profit-generating equity for all time. AMZN remains the most sought-after equity in the broader US markets. Amazon Web Services is a big contributor to staying up, as the services have been bolstered by AI investments from AMZN. With the AI boom driving many stocks higher in 2025, Amazon has rescued its stock and overall revenue by positioning itself heavily in the boom.
Also Read: Why Amazon (AMZN) is the Ultimate Long-Term Growth Stock
While Amazon dominates the e-commerce sector, it has spread its wings across various technological sectors, boosting its stock prospects. The cloud computing Amazon Web Services (AWS) contributes around 70% of the company’s operating profits. AWS dominates 32% of the cloud computing services despite stiff competition from other tech giants like Microsoft and Google.
Investments in Amazon (AMZN) are likely seeing the AWS layoffs as an opportunity to send the stock higher and expand profits. Clearly, Amazon is looking to boost its revenue and could do so by cutting down jobs and expenses. Amazon aims to achieve a 20% profit margin by 2026, up from 8% in 2024, which could help AMZN stock soar. If a 20% profit margin is achieved, it would make its P/E around 10-12 and align with Alphabet’s valuation. All these developments can push AMZN higher in value for the long term and deliver major profits to traders.