New York, Jan 29, 2026, 09:33 EST — Regular session
- Amazon shares slipped in early trading amid investor reaction to new rounds of corporate layoffs
- The company announced plans to slash 16,000 corporate jobs as part of a wider effort to boost efficiency
- Attention now turns to next week’s earnings and AWS performance amid rising Big Tech expenditures
Amazon.com shares dipped 0.7% to $243.01 in early Thursday trading following the company’s confirmation of another round of corporate layoffs. The stock remains under pressure a day after the news broke. 1
Layoffs come amid investor jitters over whether Big Tech’s hefty AI investments are actually driving growth, as this week’s earnings start to reshape market sentiment across the sector. Tech giants have been jolted by shifts in capex strategies and cloud outlooks, with Amazon set to report next. 2
Amazon announced Wednesday it plans to cut 16,000 corporate jobs, pushing total cuts since October to roughly 30,000. These layoffs stand out for Amazon and highlight the swift changes hitting white-collar roles amid automation and stricter spending.
The company also announced plans to shut down its remaining Fresh grocery stores and Go markets, while scrapping its Amazon One palm-scanning payment system, aiming to cut losses on underperforming projects.
Amazon’s top HR executive, Beth Galetti, told employees the layoffs aim to “reduce layers, increase ownership, and remove bureaucracy” to make the company stronger. She also noted that some teams would keep “making adjustments as appropriate.”
The rollout stumbled in spots. According to Reuters, Amazon mistakenly tipped off some AWS employees early via an internal note about “Project Dawn.” AWS exec Colleen Aubrey acknowledged the strain, saying, “changes like this are hard on everyone.”
Investors are weighing the impact of Amazon’s cost decisions on its key profit driver, Amazon Web Services, amid a cloud arms race to boost AI capacity. A Reuters analysis out this week highlights how Big Tech’s earnings season is putting the AI trade under pressure, with rising spending and growing questions about returns. 3
The broader backdrop stays rate-sensitive. On Wednesday, the Federal Reserve kept its benchmark rate unchanged at 3.50% to 3.75%. Chair Jerome Powell noted the Fed is “well-positioned” to hold off and wait for additional data — a key point for long-duration growth names like Amazon. 4
Amazon is set to release its fourth-quarter 2025 earnings on Thursday, Feb. 5, followed by a conference call at 5:00 p.m. ET. Investors will focus on AWS’s growth trajectory, how aggressively the company is investing in AI, and whether retail margins continue to improve as Amazon cuts back on overhead. 5
But the narrative isn’t set in stone. Bigger cuts could unsettle teams and drag down product development. If cloud demand shows cracks or if AI spending outpaces short-term revenue, investors could get spooked. That’s especially true as Microsoft and Alphabet battle fiercely over enterprise workloads.
Traders are zeroing in on Feb. 5 as the next pivotal moment, expecting Amazon’s guidance and AWS updates to steer the stock’s direction into the week ahead.
