Amazon (NASDAQ:AMZN) CEO Andy Jassy warned in a note to employees that the layoffs that started earlier this week will continue into 2023. According to Jassy, Amazon had already sent a heads-up about the impending layoffs to its devices and books divisions on Wednesday, where some employees were offered a voluntary buyout offer.
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Describing it as one of the most difficult decisions he has made since his appointment as CEO last year, Jassy emphasized that this year’s challenges were aggravated by the weak economic backdrop and last year’s rapid hiring.
Earlier this week, about 10,000 employees were laid off as part of Amazon’s cost-cutting measures.
Is Amazon a Buy, Sell, or Hold?
Notwithstanding these issues, Wall Street is bullish on AMZN stock, with a Strong Buy consensus rating based on 33 Buys and one Hold. The average price target is also attractive, at $140.36 which reflects analysts’ expectations of about 48% stock appreciation over the next year.
Despite a trailing-12-month price-to-earnings ratio of 89.2x, which is a handy premium to its sector valuation, the stock is worth considering given the solid growth avenues that the company has.
