Amazon is the latest big tech company set to cut jobs. According to Financial Times, Amazon is set to cut around 10,000 jobs. We’ve seen similar job cut numbers from other big-cap tech companies. Meta recently fired 11,000 employees. Google also cut many jobs in September.
The reason Amazon is cutting jobs is in anticipation of the coming recession. 78% of American employees are worried their job may be cut during the recession.
We are noticing Google changing some of its features recently to rely less on people and more on AI. You used to be able to complain about Google Search results and even leave a lengthy comment regarding your issue. Google employees would then read your complaints. Now though no such text field to input a complaint exists. Perhaps “customer service” may get worse at Amazon as well over the next 12 months.
Amazon stock looks overpriced given its job cut figures. Amazon stock has a P/E of 90.85 and a forward P/E of 58.42. For perspective, Tesla has a P/E of 58.83 and a forward P/E of 33.87. Tesla’s market cap is roughly half of Amazon’s.
Many small businesses have already been in a recession all year yet there is no acknowledgment of its existence. Once the “recession” finally gets announced, things are probably going to be considerably worse, even if it is announced as a “shallow” one.