Amazon (AMZN) Stock Rises Amid AWS Job Cuts, AI Investments Bolster Resilience

Amazon Web Services has eliminated thousands of roles in a strategic restructuring, triggering a 0.26% stock uptick for parent company Amazon (AMZN). The cloud division confirmed the layoffs were necessary to reallocate resources toward innovation, particularly in artificial intelligence infrastructure.

While the exact scale remains undisclosed, internal sources describe at least hundreds of terminations executed via abrupt system deactivations. The cuts follow a turbulent first half of 2025 marked by trade wars and market volatility, yet AMZN shares maintain a 1.9% year-to-date gain.

Amazon's valuation endurance stems largely from AWS's AI-driven growth, positioning it as a rare profit anchor in choppy markets. The cloud unit's aggressive AI infrastructure spending mirrors industry-wide trends fueling tech stock recoveries this year.