Amazon's (AMZN) Most Recent Round of Layoffs Hits Thousands of Engineers

Tech giant Amazon (AMZN) recently laid off over 14,000 workers, which impacted almost every company department. However, engineers were hit the hardest. In filings across New York, California, New Jersey, and Washington, nearly 40% of the 4,700 job cuts in those states were engineering roles. These filings were part of the WARN (Worker Adjustment and Retraining Notification) reports that companies must submit before large layoffs. Nevertheless, it's important to note that these filings reflect only a portion of the total October layoffs, as reporting rules vary by state.TipRanks Black Friday Sale Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence. Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off Furthermore, this was one of Amazon's largest rounds of layoffs in its 31-year history and was part of a wider trend in tech, where nearly 113,000 jobs have been lost this year across 231 companies, according to Layoffs.fyi. While artificial intelligence is a growing focus, Amazon says that most of the cuts weren't directly because of AI. Still, the company is heavily investing in it, and CEO Andy Jassy has said that AI will likely reduce the need for corporate roles in the future. In addition to engineers, the layoffs affected over 500 product and program managers, as well as senior-level staff. Amazon also scaled back many risky or unprofitable ventures, such as its telehealth service and fitness devices, and made cuts in its video game division. Moreover, the company downsized its visual search team (which built AI tools like Amazon Lens), and its online ad business saw over 140 marketing and sales roles cut in New York. Is Amazon a Buy, Sell, or Hold? Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 40 Buys and three Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $294.71 per share implies 36.2% upside potential.