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Key Points
- Amazon rose 2.16% to 244.53, despite reports of imminent corporate layoffs
- Planned job cuts form part of a broader reduction of around 30,000 roles, or nearly 10% of corporate staff
Amazon shares gained 2.16% on Tuesday to trade near 244.53, holding firm even as reports emerged of internal confusion surrounding planned layoffs at Amazon Web Services.
The stock’s advance suggests traders remain focused on longer-term efficiency gains and upcoming earnings, rather than short-term operational noise.
The move followed a Reuters report that Amazon intends to lay off thousands of corporate employees starting this week.
The situation became more visible after an internal email was mistakenly sent early to AWS staff, appearing to confirm layoffs before impacted employees had been formally notified.
Despite the misstep, the market response remained constructive.
A cautious forecast suggests Amazon’s share price may continue to track broader tech sentiment and earnings expectations, with internal restructuring viewed as a margin-supportive measure rather than a growth threat.
Layoff Plan Highlights Ongoing Cost Discipline
The email, signed by Colleen Aubrey, senior vice president of applied AI solutions at AWS, stated incorrectly that employees in the U.S., Canada, and Costa Rica had already been informed of job losses.
The communication referred to the cuts internally as “Project Dawn”, though Amazon has not publicly confirmed the plan or its full scope.
People familiar with the matter indicated that roles across AWS, retail, Prime Video, and human resources are expected to be affected.
Amazon did not respond immediately to requests for comment, and a team-wide meeting referenced in the email was quickly cancelled.
This week’s reductions follow earlier job cuts in October, when Amazon laid off about 14,000 employees.
Those moves formed part of a wider plan to reduce corporate headcount by roughly 30,000, nearly 10% of its corporate workforce.
In absolute terms, this remains a small fraction of Amazon’s total 1.58 million employees.
From a market perspective, these figures reinforce the view that Amazon is still actively managing costs rather than retreating from growth.
AI Adoption and Store Closures Shape Strategy
Amazon linked its October layoffs directly to increased use of artificial intelligence and efforts to strip out layers of bureaucracy.
That narrative has remained consistent, with automation and AI deployment positioned as long-term efficiency drivers rather than one-off cost cuts.
On Tuesday, Amazon also confirmed job reductions in its Fresh grocery and Go market divisions, as it plans to close some physical stores and convert others into Whole Foods locations.
This shift underlines a continued reallocation of resources away from lower-margin formats toward more established retail operations.
Traders appear to view these actions as disciplined rather than defensive, particularly in an environment where margins and free cash flow remain in focus.
Technical Analysis
Amazon (AMZN) closed at $244.53, gaining +5.17 (+2.16%) for the session, driven by steady intraday momentum.
The stock bottomed at $243.09 before climbing to a high of $244.80, with strong bullish candles above all key short-term moving averages (MA5–30 clustered around $244.30–$244.61).
The last few candles show slight consolidation just beneath the session high, but price remains above the short-term MA lines, signalling strength.
Volume held steady throughout the uptrend, confirming buyer interest. If Amazon can stay above $244.50–244.70, the next breakout attempt could target $245+. Below $243.90, short-term momentum may fade.
Short-Term Outlook
Amazon enters the latter part of the week with shares supported by broader tech strength and confidence in its cost discipline strategy.
While the handling of internal communications around layoffs has drawn attention, markets have so far treated the episode as operational friction rather than a structural concern.
Near-term direction is likely to hinge on earnings expectations, guidance around AWS demand, and how convincingly Amazon frames AI-led efficiency gains.
Continued stability in the wider Nasdaq complex would further support the stock, even as restructuring headlines persist.
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