Amazon (AMZN) – Cost Cuts – February 10, 2024
Amazon will cut about $100 million in payroll within its healthcare unit amid another series of layoffs. As always, layoffs suck from a human perspective. I hope all of those impacted find great jobs in what is still a fantastic job-seeker market. From an Amazon perspective, this merely adds another operating income tailwind into the fold. Whether it’s ads, fulfillment localization, new fulfillment services from its existing cost base, 3rd party selling or Prime pricing power, Amazon is enjoying strong wind at its back as it pushes for more leverage.
With GenAI use cases exploding, Amazon is finding new ways to automate developer coding, AWS maintenance and also customer service. So? Like Google has told us to expect throughout 2024, I unfortunately think more roles will become unneeded and more layoffs will occur for Amazon.