<div id="readability-page-1">Amazon (NASDAQ:AMZN) is once again preparing for a round of corporate layoffs, and while the headlines sound dramatic, the implications for investors are more nuanced than they might first appear. According to reports from Reuters and Bloomberg, Amazon is expected to begin cutting jobs as early as next week, in a move that could mirror the scale of last year's reductions.<h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions </li><li> Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential</li></ul> To put this into context, Amazon laid off about 14,000 employees globally in October and indicated at the time that further cuts could extend into 2026. If the upcoming round is indeed &#34;roughly the same as last year,&#34; as Reuters suggests, total job reductions across these waves could approach 30,000 employees. That would surpass the 27,000 roles Amazon eliminated across multiple rounds in late 2022 and early 2023, making it the largest layoff cycle in the company's history. At first glance, those numbers look alarming. But Amazon's corporate workforce stood at around 350,000 people in early 2023, meaning a 30,000-person reduction would represent ~8.5% of that group. More importantly, Amazon's total workforce, including warehouse and logistics employees, is about 1.57 million people. Viewed through that lens, the cuts are meaningful internally but relatively modest at the company-wide level. Management has been clear about the rationale. In an October memo, HR chief Beth Galetti described the layoffs as a shift in resources toward Amazon's &#34;biggest bets,&#34; with artificial intelligence front and center. CEO Andy Jassy has reinforced that message, arguing the cuts are less about financial stress or AI replacing workers and more about trimming excess layers of management that built up during Amazon's explosive growth from 2017 to 2022. Naturally, speculation has swirled around AI-driven automation, especially since software engineers were among the hardest-hit roles in Washington state last year. But Jassy has pushed back on the idea that AI is directly replacing jobs, even as Amazon – like its Big Tech peers – pours billions into AI infrastructure, data centers, and chips. The reality is likely a blend of both: heavy AI investment paired with cost discipline elsewhere. So what does all this mean for the stock? In the near term, probably not much. Layoffs of this nature are unlikely to materially impact Amazon's revenue trajectory or long-term growth story. Investors will be far more focused on the company's earnings report on February 5, particularly the performance of AWS, where renewed optimism around AI-driven demand has begun to improve sentiment after a choppy year. Wall Street, for its part, remains bullish on Amazon stock. The analyst consensus currently sits at a Strong Buy, with 46 of 47 analysts rating the shares a Buy and just one Hold. The average 12-month price target stands at $294.45, implying ~26% upside from recent levels. (See AMZN stock forecast) </div>

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Amazon is set to initiate another round of layoffs, potentially affecting up to 30,000 employees, which would be the largest in its history. However, this represents only about 8.5% of its corporate workforce of 350,000, and a small fraction of its total workforce of 1.57 million. The layoffs are part of a strategic shift towards AI investments, according to management. Despite the layoffs, analysts remain optimistic about Amazon's stock, with a consensus rating of Strong Buy and a 12-month price target of $294.45, indicating a potential upside of 26%.

- Amazon is preparing for another round of layoffs, potentially affecting up to 30,000 employees, surpassing previous reductions and marking the largest layoff cycle in its history.  
- The layoffs, however, represent a modest 8.5% of Amazon's corporate workforce, as the company's total workforce includes around 1.57 million employees.  
- Management emphasizes that these cuts aim to shift resources towards core initiatives, particularly artificial intelligence, without significantly impacting the company’s revenue or long-term growth outlook.

What Amazon's Latest Layoffs Mean for AMZN Stock