Amazon (AMZN) is cutting tens of thousands of white-collar roles to streamline operations under CEO Andy Jassy. An additional 2,200 permanent corporate job cuts are expected in various states starting April 28. Despite these layoffs, Amazon is investing heavily in AI, data centers, and other growth areas to boost efficiency and margins.

Recent moves by Amazon include pivoting its physical retail strategy, closing Amazon Fresh and Go stores in favor of Whole Foods locations, and expanding same-day grocery delivery nationwide. The company is reallocating resources to prioritize growth areas, such as cloud infrastructure, Trainium chips, AI services, and Alexa upgrades, to drive long-term success.

While Amazon’s stock performance has been lackluster, with shares essentially flat in 2025, investors are optimistic about the company’s growth potential. Analysts project strong AWS growth, margin expansion, and continued strength in advertising to offset any e-commerce weaknesses. Despite rising costs and capex, Amazon’s profitability and growth profile remain attractive to shareholders.

Despite recent layoffs and cost-cutting measures, Amazon remains profitable and focused on simplifying its operations. The market has reacted passively to these changes, anticipating cost savings and increased efficiency. Analysts expect the company’s Q4 2025 results to show sales growth, margin expansion, and strong performance from AWS and advertising segments.

Wall Street remains positive about Amazon’s future prospects, with several firms raising price targets and citing the potential for growth in AWS. Analysts believe that investments in AI and productivity will drive future returns for the company. The consensus target price for Amazon’s stock is approximately 25% higher than its current price, indicating confidence in its long-term growth potential.

Read more at Yahoo Finance: Even More Layoffs Are Coming at Amazon. What Does That Mean for AMZN Stock?