NEW YORK, January 28, 2026, 17:50 (EST) — In after-hours trading
Shares of Amazon.com Inc slipped 0.7% to $243.01 in after-hours trading Wednesday following an announcement of further cuts to about 16,000 corporate jobs. Human resources chief Beth Galetti described the move as part of efforts to “reduce layers, increase ownership, and remove bureaucracy,” stressing that broad layoffs every few months are “not our plan.” After-hours trading takes place after the regular 4 p.m. ET close. 1
Amazon’s latest round of cuts wraps up a plan to shed roughly 30,000 jobs since October, Reuters reported. This move reflects CEO Andy Jassy’s push to trim management layers and speed up decision-making. On Tuesday, the company also announced it will close all remaining Fresh grocery stores and Go markets, while scrapping its Amazon One palm-scanning payment system. With quarterly earnings due next week, investors will be watching closely to see if cost controls and operational focus can offset rising AI-related expenses. 2
Amazon announced plans to close its Amazon Go and Amazon Fresh brick-and-mortar stores, turning some of those spots into Whole Foods Market locations. The company will also ramp up same-day delivery across more U.S. cities this year. This shift leans heavily on Whole Foods as Amazon aims to challenge Walmart, Kroger, and grocery delivery platforms like Instacart, Reuters reported. 3
According to the Associated Press, most U.S.-based employees impacted by the latest layoffs will have 90 days to find a new role within Amazon, with severance packages and other transition assistance for those who don’t secure a position, as outlined in Galetti’s memo. The AP also noted Amazon is exploring generative AI—software capable of producing text and code—to reshape office tasks. 4
The rollout hit some bumps. Reuters reported that Amazon accidentally tipped off Amazon Web Services (AWS), its cloud division, about upcoming layoffs through a misdirected internal email on Tuesday. “Changes like this are hard on everyone,” AWS senior vice president Colleen Aubrey told employees in a message seen by Reuters. 5
Layoff announcements came as Wall Street remained volatile following the Federal Reserve’s decision to hold rates steady while flagging inflation concerns. The S&P 500 briefly crossed the 7,000 mark for the first time, according to a Reuters market column. Elsewhere, major tech earnings triggered significant after-hours volatility. 6
Oppenheimer’s Jason Helfstein bumped Amazon’s price target up to $315 from $305, maintaining an “outperform” rating—clearly bullish compared to the wider market. The boost reflects stronger AWS forecasts and the impact of automation on e-commerce margins, the firm noted. 7
Layoffs risk unsettling teams and slowing projects, particularly at AWS, where customers can pivot budgets fast and rivals stay aggressive. Should Amazon’s forecast signal weaker cloud demand, or if expenses rise before savings kick in, the stock may find it tough to maintain gains when earnings drop.
Amazon plans to release its fourth-quarter and full-year 2025 earnings on Feb. 5, followed by a conference call at 5 p.m. ET. Investors will be focused on updates regarding AWS growth, consumer spending trends, and the impact of recent cost reductions on the financials. 8
