Amazon jumps after report says it's laying off hundreds of workers (AMZN)

pulse

February 12, 2018 7:36 PM

Amazon plans to cut hundreds of jobs, mainly within its consumer retail division, according to the Seattle Times.

The layoffs are being conducted amid the company's expansion plans that includes starting up a new headquarters.

Shares of Amazon rose 3.32% to $1,384 per share on Monday following a Seattle Times report suggesting the ecommerce behemoth plans to layoff hundreds of workers, mostly in its consumer retail division. Monday's big gain has the retailer well ahead of the benchmark S&P 500, which trades up 1.56%.

Though an exact number of layoffs was not disclosed, a person familiar with the matter told the Times that the number will be "several hundreds." Additionally, hundreds more could possibly be reassigned within the company.

The cuts come amid the company's rapid expansion as it plans to build a new headquarters in a select US city. It plans to hire or move over 50,000 employees to this new destination.

Amazon announced on Friday plans to launch its own shipping business, and a pilot program for same-day delivery service for grocery items from Whole Foods stores.

Amazon's stock was up 16.75% for the year.

pulse