Amazon’s Dual Narrative: Stock Surges on Growth, 14,000 Fired for “Culture”

Amazon presented investors with a dual narrative this week: record-breaking growth and a major corporate layoff. The company’s stock soared 9% after it crushed Q3 earnings expectations, led by its powerhouse cloud division, AWS.
AWS reported $33bn in revenue, a 20% year-over-year increase and its fastest growth since 2022. This performance was unfazed by a recent, widespread service outage, demonstrating the division’s resilient market position.
Amazon’s total revenue hit $180.17bn, far ahead of the $177.82bn predicted. The company is leveraging this financial strength to invest in AI, promoting its Rufus shopping assistant and Zoox robotaxis to compete with rivals.
But as profits hit new highs, the company confirmed 14,000 corporate employees are being let go. A company blog post titled “Staying nimble” referenced AI as a catalyst for change.
On the investor call, however, CEO Andy Jassy contradicted this. He insisted the layoffs were “not really AI-driven” but were a “culture” move, an attempt to make the $2.4tn giant more “malleable.”