Amazon’s increased spending comes after a few years of cost-cutting from the company. Jassy announced layoffs in 2022 that eventually affected 27,000 people through the first half of 2023. Layoffs have continued through 2024 and even at the beginning of 2025 in smaller waves.

Amazon.com posted sales in last year's final quarter that topped Wall Street estimates, but investors initially drove shares down due to weakness in the cloud computing unit and a lower-than-expected revenue estimate.