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Amazon shares close lower on Wednesday, job reductions may exceed 18,000, CEO says

Staff layoffs at Inc (AMZN) will probably exceed 18,000 roles as part of a previously announced workforce reduction, the company’s Chief Executive Officer Andy Jassy said in a public staff note dated January 4th.

The layoffs represent about 6% of Amazon’s corporate workforce and will be initiated on January 18th. Cuts will largely affect Amazon’s e-commerce and human resources organizations, according to Jassy.

“This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years,” Amazon’s CEO wrote in the staff note.

The e-commerce giant began laying off staff across its devices and books businesses in November, as it braces for likely slower growth due to cut back spending by consumers and businesses amid persistently high inflation.

Amazon employs over 1.5 million people, including warehouse workers, which makes it the second-largest private employer in America following Walmart Inc.

The shares of Inc (AMZN) closed 0.79% ($0.68) lower at $85.14 on Nasdaq on Wednesday, with the company’s total market cap now standing at $868.57 billion.

The shares of Inc retreated 49.62% in 2022, compared with a 19.44% loss for the benchmark index, S&P 500 (SPX).

Analyst stock price forecast and recommendation

According to TipRanks, at least 35 out of 38 surveyed investment analysts had rated Inc’s stock as “Buy”, while 3 – as “Hold”. The median price target on the stock stands at $138.56. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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