{"id":350296,"date":"2025-11-02T12:25:25","date_gmt":"2025-11-02T12:25:25","guid":{"rendered":"https:\/\/www.europesays.com\/us\/350296\/"},"modified":"2025-11-02T12:25:25","modified_gmt":"2025-11-02T12:25:25","slug":"how-amazon-flipped-the-script-on-a-week-that-started-with-layoffs","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/350296\/","title":{"rendered":"How Amazon Flipped the Script on a Week That Started With Layoffs"},"content":{"rendered":"

Tuesday brought 14,000<\/a> job cuts and fresh AI concerns. By Thursday, investors were cheering.<\/p>\n

It was a turbulent week for Amazon<\/a> and its CEO Andy Jassy<\/a>, marked by historic layoffs and rising doubts about AI, followed by a swift 48-hour rebound that reassured investors. Wall Street is impressed \u2014 Amazon shares hit record highs on Friday \u2014 though questions remain.<\/p>\n

“Amazon isn’t perfect, and we are seeing increasing urgency in defending their cloud leadership position and reclaiming some of the unique culture,” Baird’s senior analyst Colin Sebastian told Business Insider. “Jassy’s strategy is proving successful, even if there are still some wrinkles to work out.”<\/p>\n

Concerns about Amazon’s culture and status as an ‘AI laggard’<\/p>\n

Tuesday’s layoffs fueled concerns about Amazon’s AI prowess, sparking questions<\/a> over whether the cuts reflected slowing growth or that efficiency gains were paying off. The company said it was a preemptive move that makes it “leaner.”<\/p>\n

Even before the layoffs, Amazon was contending with a widening perception that it was trailing in AI, with a top Wall Street analyst calling it an “AI laggard<\/a>.”<\/p>\n

On top of that, Amazon’s yearlong push to streamline<\/a> its culture and cut bureaucracy<\/a> had yet to deliver stronger shareholder returns. Jassy has cut the manager-to-employee ratio by 15% this year as part of a broader push to instill discipline and reshape Amazon’s culture.<\/p>\n

Until earlier this week, it was the only one of the seven largest tech firms to underperform<\/a> the broader market over the past five years.<\/p>\n

Investors were especially worried about Amazon Web Services’<\/a> slow growth, the company’s high-margin cloud unit. Though it maintains a far larger revenue base, AWS’ growth has lagged behind competitors such as Microsoft and Google.<\/p>\n

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“AWS revenue growth acceleration is a must,” CFRA wrote in a research note last week.<\/p>\n

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Amazon’s progress on AI went a long way toward easing investors’ concerns<\/p>\n

Amazon put those concerns to rest on Thursday. The company’s third-quarter earnings<\/a> topped expectations, and it raised its capital spending forecast amid surging demand. AWS reported $33 billion in sales, a 20% increase, its fastest growth since 2022.<\/p>\n

The company also made a number of disclosures that showcased its progress in AI, including:<\/p>\n