Last week was a big week for technology earnings reports, specifically for Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), and Microsoft Corp. (MSFT). But first, on Tuesday before earnings came out, Amazon announced 14,000 job cuts, observes Louis Navellier, founder and chairman of Navellier & Associates.
Amazon said it needs to better prepare for the impact of Artificial Intelligence (AI). Amazon senior vice president Beth Galetti said, “Some may ask why we’re reducing roles when the company is performing well,” and then elaborated: “What we need to remember is that the world is changing quickly…AI is the most transformative technology we’ve seen since the Internet.”
(Editor’s Note: Louis will speak at the 2026 MoneyShow/TradersEXPO Las Vegas, scheduled for Feb. 23-25. Click HERE to register.)
Amazon.com Inc. (AMZN)
Amazon also warned of additional layoffs in the future – more evidence that AI is eliminating jobs, in what many now call a “job apocalypse.” I should add that Amazon is also aggressively automating its warehouses with robots to reduce even more jobs.
In related news, United Parcel Service Inc. (UPS) has reduced its management workforce by about 14,000 positions so far this year, as well as cutting another 34,000 operational positions. The company said it is well-positioned to navigate the upcoming holiday season and added that its restructuring efforts have resulted in cost savings of about $2.2 billion so far this year.
Overall, outplacement firm Challenger, Gray & Christmas tracked 54,064 announced job cuts by companies nationwide in September. This was the fifth-highest monthly job cut reading that Challenger had monitored in the past 36 years. Since October totals will be even higher, the Fed must continue to cut key interest rates to stimulate job growth.
