Amazon shares rise as it prepares to axe hundreds of jobs

Amazon shares closed higher in the US Monday, as the tech giant confirmed it is planning some jobs cuts in Seattle and across its global operations.

Amazon shares rise as it prepares to axe hundreds of jobs

Amazon shares closed higher in the US Monday, as the tech giant confirmed it will axe a number of staff. Reports state that many jobs will be lost from its Seattle Head Quarters, along with roles elsewhere.

However, Amazon said the job cuts relate to its consumer retail business and that it will work to reassign staff, where possible.

Amazon shares ended the US Monday trading day 3.48% higher at $1,386.23. After-hours activity also has the Amazon stock trading in the green.

Amazon confirms job cuts

After an initial report in the Seattle Times that hundreds of Seattle-based Amazon jobs were under threat, Amazon shared a statement with a number of news outlets.

“As part of our annual planning process, we are making head count adjustments across the company – small reductions in a couple of places and aggressive hiring in many others”, the Amazon statement read.

According to Amazon’s careers page, it is currently advertising 12,359 positions and 286 part-time positions, on a global scale. Indeed, 4,011 of those positions are based in Seattle. This suggests the company is well-placed to find suitable roles for some of the staff whose current jobs must go.

The Seattle Times report suggests the layoffs are related to the super-fast growth and expansion of Amazon and are firmly tied to its consumer retail businesses.

Amazon entering AI chip making market?

As Amazon realigns its staffing needs, it seems the global behemoth is also working on upping its AI game.

In December, Amazon paid in the region of $90 million for the maker of Blink home security cameras. That acquisition came a couple of years after its purchase of Israeli chipmaker Annapurna Labs and appears to confirm the view that the tech giant has plans to enter the AI chip making market.

Specifically, Amazon is thought to be interested in developing its Echo and Alexa devices to make them faster and more responsive with AI chips, than they are when they rely solely on the cloud.

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