"Amazon's latest quarterly earnings report could answer one of Wall Street's biggest questions: Is the company cutting jobs because growth is stalling, or is the retail giant's big bet on AI making it more efficient? First scenario: The company announced 14,000 layoffs earlier this week because it's worried about its performance and wants to cut costs. Second scenario: The tech giant has become so great at artificial intelligence that its operations are becoming way more efficient, and it doesn't need as many employees now."
"For the third quarter, Wall Street expects AWS revenue to reach $32.4 billion, representing an 18% year-over-year increase, according to RBC Capital. Microsoft reported on Wednesday that Azure and other cloud services revenue increased 40%, and Google Cloud grew 34%."
Amazon's quarterly earnings will reveal whether the company's recent 14,000 layoffs reflect stalled growth or improved efficiency from AI. The company faces two primary possibilities: cost-cutting due to performance concerns, or AI-driven operational gains reducing headcount needs. AWS revenue is the key metric, with Wall Street expecting $32.4 billion in Q3 revenue, an 18% year-over-year increase. Competitors report faster cloud growth—Microsoft's Azure growth of 40% and Google Cloud's 34%—and Google has secured multiple billion-dollar deals in early 2025. Strong AWS growth would suggest AI transformation, while a miss would raise investor worries.
Read at Business Insider
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