E-commerce giant Amazon (AMZN) is planning to cut about 14,000 corporate jobs worldwide, with even more layoffs expected next year. In fact, the cuts are part of a larger plan to eliminate up to 30,000 jobs as the company tries to reverse its pandemic-era overhiring and lower costs. Unsurprisingly, a big reason for these layoffs is the growing use of artificial intelligence, which Amazon CEO Andy Jassy said would likely replace many routine corporate tasks.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
As a result, the layoffs are hitting departments like devices, advertising, Prime Video, HR, and Amazon Web Services. However, affected employees are being given 90 days to apply for other jobs within Amazon. And while the company didn’t reveal exactly how or when the full 30,000 layoffs would be rolled out, it said that it would keep hiring in some areas while cutting back in others. Nevertheless, the job cuts have raised concerns.
For instance, Senator Bernie Sanders criticized Amazon founder Jeff Bezos after referring to reports that automation could eventually replace 500,000 warehouse jobs. Two other U.S. senators also questioned why Amazon is the country’s biggest user of H-1B foreign worker visas while laying off U.S. employees. Interestingly, Amazon had around 1.56 million employees at the end of last year, including about 350,000 in corporate roles.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 41 Buys assigned in the past three months. Furthermore, the average AMZN stock price target of $269.24 per share implies 17.8% upside potential from current levels.
