Amazon Prepares for Massive Layoffs Prior to Third-Quarter Earnings Report
Amazon is bracing itself to lay off thousands of employees, with speculations hinting that the cuts could potentially escalate to 30,000 positions. The company’s objective is to “operate like the world’s largest startup.” These layoffs are scheduled just before Amazon’s third-quarter earnings report, which is set for Thursday, October 30, at 2 p.m. PT/5 p.m. ET.
The e-commerce behemoth, which amassed over $35 billion in profit in the first half of 2025 and has plans to invest more than $120 billion in AI this year, points to the necessity to streamline operations amidst “rising prices, an unpredictable trade war and a potential artificial-intelligence revolution.” However, analysts caution that such drastic staff reductions could lead to long-term risks and hidden costs, despite likely appeasing Wall Street in the short term.
Amazon’s impending earnings will be under intense scrutiny as investors seek clarity on how the company’s substantial AI spending converts into revenue. Key areas of focus include the performance of the AWS cloud division, retail margins in the face of inflation pressures, and the standing of the advertising business against competitors like Google and Meta. This places Amazon’s results in the midst of big tech’s earnings season, marking a critical period for the industry.
Source: CNN Business