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- Amazon plans to cut costs by laying off workers worldwide.
- Proposal to shut off UK warehouses in 2023.
- Many speculate Bezos’s return as CEO.
Amid the layoff season, many companies are making massive job cuts to deal with the slowing economy. Amazon (NASDAQ: AMZN) has planned to chop off nearly 18,000 job roles across various divisions, worldwide. As demand boomed during the pandemic, tech companies shed more than 150,000 workforce in 2022 after the virus showed signs of abating. The number of people laid off keeps on growing as the world’s biggest economies are showing recessionary signs.
Amazon shed its workforce in 2021 and 2022 and plans on to continue the ritual in 2023 as well. In addition, Jeff Bezos might return to Amazon as CEO this year. Although the news is unconfirmed, it does excite stockholders into accumulating shares beforehand.
As per a Reuters report, Amazon plans to shut three warehouses in the UK. This would further add to the job cuts being made by the company. Furthermore, it says they have launched a consultation on the proposed closure of the UK centers. It also plans to open two new fulfillment centers in the UK, creating 2,500 new jobs over the next three years.
Many believe the aforementioned statement to be contradictory to the purpose of layoffs; but when viewed over the time period of three years, it doesn’t seem to be a very impactful step. When compared to the mass layoff of 18,000 in a year, creation of merely 2,500 job roles over the course of three years, looks like a cherry on the top of an already deformed cake.
Where the US economy is slowing down, and many companies are axing jobs, rival companies are rising to display a neck to neck competition. One of the competitor companies, Alibaba (NYSE: BABA) rose by nearly 8% a few days back. The stock price saw a surge in Hong Kong after founder Jack Ma bequeathed control of the sister company– Ant Group.
The chart tale
AMZN’s price movement has formed a falling parallel channel with current prices trying to pierce the upper border. The 20-day EMA was captured, with today’s opening at $87.46. The volume looks range-bound and flat, showing no volatility. A strong surge can be established if the present prices of $87.36 can sustain above the breakout level near $89.57. The predicted rally could touch $100.77.
The RSI rises closer to the 50-mark average, signaling signs of a possible transition to buyer-dominance. The MACD records both active buyer and devoted sellers that set the market in the state of equilibrium. A cumulative study suggests a surge to occur soon and making prices reach beyond the $100 mark.
Conclusion
The market looks promising, but may respond adversely to the news of mass layoffs. Holders should watch the breakout level for further rallies in AMZN. If the price reaches the $100 mark, a solid bull run may be established in the market, during the recessionary market.
Technical levels
Support levels: $81.50 and $78.30
Resistance levels: $95.57 and $103.84
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
