Amazon.com Inc. (NASDAQ: AMZN) saw its shares jump 13% in extended trading following the release of its third-quarter results, which surpassed analyst expectations across key metrics. The e-commerce and cloud computing giant demonstrated robust performance in both its core business and its cloud division, Amazon Web Services (AWS).

Financial Highlights

Amazon's total revenue for the quarter reached $180.10 billion, exceeding analyst projections of $177.80 billion. The company's earnings per share stood at $1.95, significantly outperforming the estimated $1.57.

Cloud Business Acceleration

Amazon Web Services, the company's cloud computing arm, generated $33.00 billion in revenue, surpassing the $32.42 billion estimate. AWS posted a year-over-year growth rate of 20.2%, beating analyst expectations of 18.1%. CEO Andy Jassy noted that this represents AWS's fastest growth pace since 2022.

However, Amazon's cloud business growth still lags behind its major competitors. Google's cloud business grew by 34%, while Microsoft's cloud division saw a 40% increase.

Future Outlook and Capital Expenditure

Amazon has raised its capital expenditure guidance for the year from $118 billion to $125 billion. CFO Brian Olsavsky indicated that further increases are expected in 2026, signaling the company's commitment to long-term growth and infrastructure development.

Looking ahead to the fourth quarter, Amazon forecasts sales exceeding $200 billion. The company's guidance midpoint of $209.50 billion is above the analyst estimate of $208.00 billion, suggesting continued strong performance through the end of the year.

Organizational Changes

CEO Andy Jassy addressed the recent layoffs of 14,000 employees, attributing them to cultural restructuring rather than financial pressures or the impact of artificial intelligence. This clarification aims to reassure investors about the company's strategic direction and operational efficiency.

Stock Performance

Amazon's shares traded at $251.57 in after-hours trading. If these gains hold, the stock could open at a new 52-week high, reflecting investor confidence in the company's financial health and growth prospects.

The strong quarterly results and positive outlook have reinvigorated investor enthusiasm for Amazon, highlighting the company's resilience and continued dominance in both e-commerce and cloud computing sectors.

Amazon, the e-commerce giant, has announced a significant restructuring effort that includes cutting approximately 14,000 jobs across its corporate workforce, including substantial cuts to its video game division. This move comes as part of the company's strategy to streamline operations and redirect resources towards key investments and customer needs.

Restructuring Details

Beth Galetti, Amazon's senior vice president of people experience and technology, stated that the reductions aim to:

• Reduce bureaucracy
• Remove layers within the organization
• Shift resources toward the company's biggest investments and customer needs

Reports suggest that the impact of these job cuts could potentially extend to up to 30,000 positions, signaling a substantial reorganization within the company.

Video Game Division Cuts

As part of the broader layoffs, Amazon is making significant cuts to its video game division:

• Roles will be reduced at the Irvine and San Diego offices and central publishing division
• The company is scaling back work on big-budget titles, particularly massively multiplayer online games (MMOs)
• Amazon is refocusing on its Luna cloud gaming service
• Development of casual and AI-focused games will continue
• The Montreal studio will keep working on March of Giants
• External partners Crystal Dynamics and Maverick Games will continue their respective projects

Amazon has struggled to establish itself in the gaming industry despite some successes like Lost Ark. The company is moving away from online games such as New World, which peaked at over 900,000 concurrent players in 2021, and had been developing a Lord of the Rings MMO.

Scale of the Workforce Reduction

To put this restructuring into perspective, here's a breakdown of the numbers:

Previous Restructuring Efforts

This is not the first time Amazon has undertaken significant workforce reductions:

• CEO Andy Jassy has overseen multiple rounds of job cuts
• 27,000 corporate roles were eliminated in late 2022 and early 2023

Future Workforce Strategy

Amazon's approach to its workforce appears to be evolving:

• The company has set more aggressive attrition targets
• Vacant positions in corporate logistics and advertising operations have not been filled
• CEO Andy Jassy has indicated that Amazon's workforce is likely to shrink further

AI Integration

A key factor in Amazon's workforce strategy is the increased use of artificial intelligence:

• The company plans to leverage AI for tasks typically handled by employees
• This shift towards AI integration may contribute to the reduction in human workforce requirements

As Amazon prepares to report its quarterly earnings, these restructuring efforts are likely to be a significant point of discussion for investors and analysts. The company's ability to maintain operational efficiency while investing in strategic areas will be crucial for its future growth and market position.