Amazon.com, Inc. (AMZN) has experienced a decline of 2.26%, trading at $238.67, following the announcement of substantial layoffs impacting 660 employees across nine offices in New York City. These layoffs, effective November 8, 2025, are part of a restructuring initiative aimed at enhancing operational efficiency amid evolving business priorities.
The company”s decision was outlined in a Worker Adjustment and Retraining Notification (WARN) filing, detailing the specific locations affected, including offices on 7th Avenue, 10th Avenue, and 34th Street in Manhattan. Although the specific departments impacted were not disclosed, analysts suggest that corporate roles are primarily affected.
During a recent earnings call, CEO Andy Jassy addressed the layoffs, clarifying that they are not driven by financial motives or advancements in artificial intelligence. Instead, he emphasized that the changes are rooted in a cultural shift within the organization. “It”s not really financially driven, and it”s not even AI-driven,” Jassy stated. He noted that the rapid growth of Amazon had led to increased layers and complexity, which diluted accountability among teams.
In a separate yet significant development, Amazon is facing a proposed class-action lawsuit alleging discriminatory practices against disabled employees. Filed in federal court in Manhattan, the lawsuit claims that Amazon enforces a “punitive absence control system” that penalizes workers for taking necessary unpaid leave, even when such leave is protected by law. Lead plaintiff Cayla Lyster, who works at a warehouse near Syracuse, alleged that she faced multiple instances of unpaid leave while waiting for necessary accommodations.
Amazon has responded to these allegations, with spokesperson Kelly Nantel asserting that the company prioritizes the health and well-being of its employees. She stated that Amazon fosters a “safe and supportive environment” and that it complies with all applicable disability and employment laws. This lawsuit follows a recent accusation by the New Jersey Attorney General, who claimed that Amazon denied accommodation requests for pregnant and disabled workers, a claim that the company vehemently denies.
The combination of layoffs and legal scrutiny underscores ongoing challenges within Amazon”s corporate structure and labor relations as the company continues to navigate the delicate balance between operational efficiency and employee welfare. Investor sentiment remains cautious as these developments unfold.
