Amazon layoffs ‘not a positive signal,’ but ‘good for sentiment,’ says BofA

After Amazon (AMZN) CEO Andy Jassy confirmed that the company is planning to lay off roughly 18,000 employees, or about 5.5% of corporate staff, BofA analyst Justin Post noted that this was more than the initial 10,000 planned in November. The increase in total layoffs by 8,000 "could be a cautious sign for holiday sales," but Amazon did indicate in November that additional layoffs were being considered and these cuts will likely improve sentiment on Amazon management’s focus on a better balance between profits and growth, Post tells investors. The analyst, who maintains a Buy rating on Amazon, also thinks Amazon’s layoffs and stock reaction will be a good read for Alphabet (GOOGL) as he continues to expect the latter will more aggressively cut costs in 2023.