In early 2026, Amazon announced the elimination of approximately 16,000 corporate roles, representing roughly 5% of its global staff. This follows 14,000 cuts in October and brings total headcount reductions to 30,000 over the past year. The company attributes the move to cost discipline and portfolio optimization, but labor researchers point out that AI was explicitly cited in fewer than 5% of these layoffs. For long-term investors, the key takeaway is the potential boost to operating margins—projected to improve by 100 basis points in 2026—versus the risk of dampened consumer sentiment amid workforce contractions.

Analysts project that Amazon’s full-year revenue for 2025 will exceed $700 billion, marking the first time the company crosses this milestone. Fourth-quarter sales are forecast at approximately $211.3 billion, up about 12% year-over-year, while earnings per share are expected near $1.97. Amazon Web Services remains the growth engine, with Q4 cloud revenue anticipated around $35 billion—up more than 21%—and management targeting capacity expansion to double by 2027. Investors will watch capital expenditure levels closely, given the company’s planned $90 billion in infrastructure investments over the next 12 months.

Amazon announced that Amit Agarwal, senior vice president of international stores, will assume leadership of the Selling Partner Services division, one of its highest-margin segments. He replaces Dharmesh Mehta, who will become CEO Andy Jassy’s technical advisor. Selling Partner Services generated nearly $25 billion in revenue in 2025, delivering operating margins above 25%. The internal promotion underscores Amazon’s emphasis on continuity and deep bench strength, while investors will assess Agarwal’s ability to sustain revenue growth above 30% annually and preserve margin profiles as the company scales.

Amazon is embedding advanced AI across multiple businesses. The newly rolled-out Alexa+ assistant, now available to all U.S. users, leverages large language models to handle multi-step tasks such as travel bookings and calendar management. Meanwhile, MGM Studios’ in-house AI Studio has begun closed beta trials of tools designed to streamline pre- and post-production workflows, with early tests generating over 350 AI-assisted shots in its latest series. Separately, Amazon continues discussions to invest up to $50 billion in OpenAI for preferential model access. These moves signal Amazon’s strategy to drive higher engagement on its devices and cloud services, potentially increasing AI-related revenue by $5 billion annually by 2027.