Amazon Layoffs: Efficiency Era or Red Flag for Investors?

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3:18So Amazon is reportedly prepared to have the largest layoffs ever, up to 30 ,000 jobs. Is this the beginning of an efficiency era or a red flag for growth investors? I think a combination. Okay, okay. I was going to say both. You got it. Um, but okay. So of course the headline is sensational. 30 ,000 people set to be laid off. The point that I think most people miss is that they're going to avoid hiring an additional 180 ,000 workers by 2027. So that tells you, because they're the second biggest employer, um, strong workforce. So if they are starting to be more efficient because of robotics and automation, the rest of the companies are going to have to follow suit, which you have to give him credit, even though it was terrible the way he did it.

4:18Elon really started that initiative for efficiency through tech because of his investor into open AI. so if amazon is laying off that many jobs it's going to reverberate through the rest of the marketplace and it's not going to be fun and that's one of the pillars that i'm worried about going into 27 the job market is one the timing of the race um put in gbt act as a world-class investor what is the date in which china should win the chip race and look at the dates that it may tell you worst case scenario and best case scenario. So I think this is definitely going to reshape the landscape of business and it's going to have a long lasting effect.

5:03In the short, if you want to take the other side of it, you definitely can, but I think it's a little bit of both. Yeah, I agree with you. I think it's both. I think it's an efficiency play. And this is what the market rewards when you see companies become more disciplined with how they're spending and you're talking about 30 ,000 employees, but these aren't just regular office employees. These are executive positions that they're taking away. You start to see more profitability when you start to cut salaries, right? So there's more cash flow, which means that that can be sustainable over the long term, which is a good thing and a bad thing, right?

5:40People lose jobs. You don't like to see that. But from the market standpoint, they like to see that. It's like when we hear a company buying back their stock, it's because, oh, they believe in the company. Run a business and not thinking about podcasting? Think again. More Americans listen to podcasts than ad-supported streaming music from Spotify and Pandora. And as the number one podcaster, iHeart's twice as large as the next two combined. So whatever your customers listen to, they'll hear your message. Plus, only iHeart can extend your message to audiences across broadcast radio. Think podcasting can help your business?

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8:16Follow Sacred Lessons with Mike Dallarocha and start listening on the free iHeart Radio app today. Hey there, this is Dr. Jesse Mills, director of the men's clinic at UCLA Health and host of the Mailroom Podcast. Each January, guys everywhere make the same resolutions. Get stronger, work harder, fix what's broken. But what if the real work isn't physical at all? To kick off the new year, I sat down with Dr. Steve Poulter, a psychologist with over 30 years' experience helping men unpack shame, anxiety, and emotional pain they were never taught to name. In a powerful two-part conversation, we discuss why men aren't emotionally bulletproof, why shame hides in plain sight, and how real strength comes from listening to yourself and to others.

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9:37If you want 2026 to be the year you finally feel in control of your money, we're here to give you the tools and advice to help you make it happen. Listen to How to Money on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. They want to take away shares from the general public. The other part is that maybe it's a sign that they aren't producing at the levels that they thought. who is it amazon and they might have to just scale down right we don't know that which is why this week i think they report on thursday we'll get to see and so these these are some i wrote these down the key things that i'm going to watch for and i think you should watch for too right in terms of how this can be a combination the first thing is growth rates so we want we talked about aws and we saw last week how important that was in fact even for our show how important it was Let's see if AWS has stayed steady or has it grown or has it lost some market share, right?

10:33Because that is a sign. Then the advertising business. Let's see if there's a growth there in advertising because people forget how much in advertising that Amazon makes. We always talk about Google and YouTube and advertising, but Amazon makes an absolute killing. Then e-commerce, the international, right? Have they expanded? because that was one of those things when we talk about, yes, they've dominated here, but they have an international presence. Yes. Is there growth here? And is there growth in the international e-commerce? Those are the things that I'm watching for because it is one of my favorite companies and I refuse to trade options on it.

11:08I just own shares on it to see what this 30 ,000 really means short-term, long-term, right? Because if I start to see the growth rates and I start, those things are all improvement, then it's just like, all right, this is an efficiency play. they want to scale down to have more revenue. If not, then it's a sign that, hey, maybe we're not producing at the level that they thought they would this quarter. The issue that I've always, has been a stock club pick since 2019 in the retirement portfolio, the issue they always had was a margin issue. And so I'll be very clear, gross margin, 48%. That margin is 10.5 % for a company that is almost a monopoly to be that big.

11:51that is a historically low profit margin, they're going to find a way to do anything they can now that it's acceptable to get the human capital costs off the balance sheet to drive profit up. And they are going to set the table for it to be okay for everyone else to do so. But once again, 2027, they're going to avoid hiring another 180 ,000 workers. That's a big number to keep your eyes on and if that stays true the way that corporate is going to be reshifted we're never going to go back to mass hiring the way that it was once done yeah yeah and that that that profit margin is actually improved we've seen it at like five yeah when you said 10 i was like oh shit yeah it's actually improving 10.55 yep and and they're one of the leaders in terms of cap expand when it comes to ai but you got to give them credit for that because through a truncated net margin they've always invested for the future and now they are in a position to take advantage of it they may be the pre-eminent company that rush that ushers in that i robot type which is another thing that elon is trying to do and it's a race even amongst tech as we're in the world with China to see who can get automation and efficiency at scale, which is going to decimate the job market for sure.

13:23They've kind of just been quiet, but just steadily. I mean, if you look at the stock, it's pretty much been flat for the year when you look at it. But even some of the moves they've made, like with their data center expansion, their partnership with Anthropic, them increasing their partnership with Anthropic, they're making the moves. But I'm with you. I think they've always had the long-term approach, like we're going to invest now big so that we can pay off later. Yeah, but in April, they were at$160.90. They're currently at$226.97. So given the hard capital costs that they have, they've done a pretty tremendous job.

14:00And like you said, moving up that net margin from 5 % to 10 % or 10.55 % over the last year and a half has been great. earners what's up you ever walk into a small business and everything just works like the checkout is fast the receipts are digital tipping is a breeze and you're out the door before the line even builds odds are they're using square we love supporting businesses that run on square because it just feels seamless whether it's a local coffee shop a vendor at a pop-up market or even one of our merch partners square makes it easy for them to take payments manage inventory and run their business with confidence, all from one simple system.

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15:59Can you hypnotize someone into sleeping with you? I gave her some suggestions to be sexually aroused. Can you get someone to join your cult? NLP was used on me to access my subconscious. Mind Games, a new podcast exploring NLP, a.k.a. neurolinguistic programming. Is it a self-help miracle, a shady hypnosis scam, or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Hello, hello, all my people. What's up? It's Questlove. Recently, I had the opportunity to sit down with the one and only ASAP Rocky. He reflects on his journey from Harlem roots to global icon status and discovering the hip-hop origin of his name.

16:42The ledge was on the TV. Rakim had the bucket hat Kangol join on. My pops was like, that's Rakim. That's who you named after. I just was like, damn the f***ing f***ing I swear. or listen to the Questlove show on the iHeartRadio app, Apple Podcasts, or wherever you get your podcast. A new year doesn't ask us to become someone new. It invites us back home to ourselves. I'm Mike Della Rocha, host of Sacred Lessons, a space for men to pause, reflect, and heal. This year, we're talking honestly about mental health, relationships, and the patterns we're ready to release. If you're looking for clarity, connection, and healthier ways to show up in your life.

17:23Sacred Lessons is here for you. Listen to Sacred Lessons with Mike Delaroach on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Hey, it's Joel. And Matt. From HowToMoney. If your New Year's resolution is to finally get your finances in shape, we've got your back. Prices, they're still high, and the economy is all over the place. But 2026 is the year for you to get intentional and make real progress. That's right. Each week, we break down what's happening with your money. the most important issues to focus on, and the small moves that make a big difference. Kick off the year with confidence, listen to How to Money on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

18:03This is Dr. Jesse Mills, host of the Mailroom Podcast. Each January, men promise to get stronger, work harder, and fix what's broken. But what if the real work isn't physical at all? I sat down with psychologist Dr. Steve Poulter to unpack shame, anxiety, and the emotional pain men were never taught how to name. Part of the way through the valley of despair is realizing this has happened, and you have to make a choice whether you're going to stay in it or move forward. Our two-part conversation is available now. Listen to The Mailroom on the iHeartRadio app, Apple Podcasts, or wherever you get your favorite shows.

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