Amazon Is Cutting Jobs. Why That’s a Strong Sign for the AI Boom.

(Octavio Jones/Getty Images)

Make room for the robots. Amazon.com says it will cut around 14,000 employees in another sign of Big Tech’s determination to push ahead with artificial-intelligence investment, as the sector deals with funding and infrastructure challenges.

Amazon’s layoffs are equivalent to around 4% of its corporate workforce. That’s not unprecedented for the e-commerce company—it implemented a larger reduction back in late 2022. But the cuts make room for more spending on AI and follow through on CEO Andy Jassy’s claim the technology will enable Amazon to permanently reduce its workforce.

The company hinted at more cuts to come as it talked of finding “additional places to remove layers” in 2026, in a memo to employees Tuesday.

Coming ahead of Amazon’s earnings report on Thursday, the signal is the company will do whatever it takes to enable further AI investment. And it’s not alone. Alphabet’s Google is helping reopen a nuclear plant in Iowa in order to power its data centers. That comes as ChatGPT-developer OpenAI calls for the U.S. to build 100 gigawatts a year of new energy capacity, nearly double the level in 2024.

Other bottlenecks are also being addressed. Qualcomm is entering the AI server game and while its technology is unlikely to be a match for Nvidia’s most advanced systems, it adds another option for companies hoping to bring down computing costs. Investors are still keen on AI hardware, pushing up Qualcomm’s stock 11% on Monday.

It’s hard to see an AI bubble bursting this earnings season. Capital expenditure by the major cloud-computing companies is set to rise more than 50% this year, according to analysts’ forecasts. Perhaps the major test comes next year, when that rate of growth is expected to fall below 20% and the pressure will be on for evidence of return on investment.

Cutting thousands of workers in the run up to Christmas might not exactly be in the holiday spirit. But if it delivers the gift of more AI investment, Wall Street will be grateful.

— Adam Clark

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Amazon Is Cutting 14,000 Corporate Jobs, Warns of More to Come

Amazon said on Tuesday is will reduce its corporate workforce by about 14,000 roles, according to an internal memo shared with employees. The e-commerce and cloud-computing giant is bidding to build up its cash pile so it can plow even more money into artificial intelligence.

• The tech company announced the thousands of corporate pink slips and more to come in 2026. The Wall Street Journal reported on Monday that the cuts would be targeted across teams including human resources, cloud computing, advertising, and other business groups.
• “We expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership, and realize efficiency gains,” Beth Galetti, senior vice president of People Experience and Technology at Amazon, said in the memo announcing the reduction.
• Galetti added that AI was “enabling companies to innovate much faster than ever before.” CEO Andy Jassy said in a note to employees in June that AI would likely “reduce our total corporate workforce.”
• Shares closed 1.2% higher on Monday, and were climbing again ahead of Tuesday’s opening bell. They have risen just 3.5% this year, lagging the S&P 500 as well as other tech giants like Microsoft, Nvidia, and Google owner Alphabet, which have soared amid a surge in interest in AI.

What’s Next: The next big moment for Amazon stock is likely to come after Thursday’s close, when the company is set to report its third-quarter earnings. Analysts are expecting earnings of $1.57 a share on sales of $177.9 billion, according to a FactSet poll, which would mean sales rose 12% from a year ago.

— Anita Hamilton, Adam Clark and George Glover

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Qualcomm Elbows Itself Into the AI Computing Race

Qualcomm has introduced artificial intelligence accelerator chips, putting it in competition with AI chip giant Nvidia and rival Advanced Micro Devices. Before now, Qualcomm focused on making chips for mobile devices, but it will start delivering the new rack servers next year.

• The new servers will incorporate AI accelerator cards using Qualcomm’s Hexagon NPU technology that can support up to 768 gigabytes of memory. The memory architecture design will deliver higher memory bandwidth and lower power consumption than prior generations.
• Qualcomm is focusing its rack server products for AI inference workloads, the process of generating answers from already developed AI models, not the AI model training market Nvidia dominates.
• Senior Vice President Durga Malladi told The Wall Street Journal that the processors represent the natural evolution of its product line. After developing device-based chips, Qualcomm wants to scale up capabilities for AI data centers. With “extremely high memory bandwidth and extremely low power consumption,” they offer “the best of both worlds.”
• Qualcomm said HUMAIN, an AI company founded by Saudi Arabia’s sovereign Public Investment Fund, plans to deploy 200 megawatts of Qualcomm’s AI AI200 and AI250 rack solutions at Saudi data centers and around the world starting next year.

What’s Next: Qualcomm said the AI200 will be available next year, and the AI250 will come out in 2027. Both will be available as stand-alone components or as cards that can be added into existing machines.

— Tae Kim and Janet H. Cho

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As Bank M&A Heats Up, Texas Emerges As the Epicenter

Texas has emerged as a center of dealmaking between banks this year, drawing CEOs who are competing for access to the state’s deposit base and broader growth relative to other markets, even as some indicators tracked by the government reflect pressure on the economy there.

• The state is home to the largest share of banks targeted by other U.S. banks for acquisitions in 2025, according to an analysis by S&P Global Market Intelligence. Monday’s $7.4 billion deal by Ohio-based Huntington Bancshares for Houston’s Cadence Bank is just the latest.
• Fifth Third Bancorp said in early October that it would acquire Dallas-based Comerica for $10.9 billion, creating the ninth-largest U.S. lender by assets. Glacier Bancorp is buying Addison, Texas-based Guaranty Bancshares, while National Bank Holdings Corp. and Prosperity Bancshares are also acquiring Texas lenders.
• Cadence, also based in Tupelo, Miss., brings $53 billion of assets and 390 branches. Last week Huntington completed its $1.9 billion acquisition of Dallas-based Veritex Holdings. Cadence, meanwhile, has completed two bank deals of its own this year, including one based in Industry, Texas.
• Brant Standridge, Huntington’s consumer and regional banking head, cited the state’s growth opportunities, like expectations it will lead U.S. population growth through 2031, and called the area known as the “Texaplex”—the triangle between Dallas, Fort Worth, Houston, Austin, and San Antonio—a “juggernaut of economic growth.”

What’s Next: Some 190,000 new households are forming in the Texaplex region each year and 53 companies in the Fortune 500 are now based there. At the same time, some indicators show growth in Texas is pressured, presenting a set of risks for firms adding exposure to the economy there.

— Rebecca Ungarino

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Suspension of Food Assistance During Shutdown to Hit Economy

With the government shutdown now the second-longest in U.S. history, millions of Americans are set to lose access to federal food assistance, according to the U.S. Department of Agriculture. The funding lapse is likely to hurt grocery stores, transportation companies, local economies, and the broader U.S. economy.

• The Supplemental Nutrition Assistance Program, or SNAP, funding will end Nov. 1, the USDA said, blaming Democrats for the shutdown. Already it had said last week that it won’t use contingency funds to maintain SNAP payments.
• The suspension of SNAP benefits will likely occur in phases. Evercore ISI estimated that 16 million participants will be affected as of Nov. 5. Approximately 42 million Americans, or about one in eight people, rely on SNAP benefits for groceries that typically total an average of $187.20 a month.
• State and local sales tax revenue could fall, while the retail and transportation sectors could be plagued by declining demand. In a prolonged shutdown, the suspension of SNAP payments could hit consumer spending. Each SNAP dollar spent generates $1.79 in economic activity, the Food Research & Action Center says.
• Republicans slashed $187 billion from SNAP. Those funding cuts were set to lower aggregate consumer spending in the long run by up to 0.5%. Typically, every 1% decline in SNAP benefits is associated with a 0.03% drop in total household consumption, Oxford Economics’ lead U.S. economist Bernard Yaros said.

What’s Next: So far, the shutdown is shaving about 0.2% a week from inflation-adjusted gross domestic product, Diane Swonk, chief economist at KPMG calculates. “Losses are nonlinear; they tend to rise the longer the shutdown lasts,” she said.

— Megan Leonhardt

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Lululemon’s NFL Apparel Collection Takes It In New Direction

Lululemon Athletica, best known for yoga and athleisure wear, has been searching for new growth areas, and the National Football League and its 32 teams are part of the answer. A brand collaboration announced Monday hinges on product innovation, says BTIG analyst Janine Stichter.

• The two will offer NFL team branded items at the NFL’s online store, Fanatics.com, and at team stores, including men’s and women’s apparel and accessories. Lululemon last fall tested a collection with 11 of the National Hockey League’s teams, expanding that to all 32 teams.
• Lululemon has struggled with consumer “fatigue” with its casual offerings, and has lost market share to rivals like Alo and Vuori, especially among younger shoppers. Jefferies analyst Randal Konik called the move a “Hail Mary” that signaled “strategic confusion” amid steeper competition and slowing U.S. sales.
• By chasing non-core growth at the expense of clarity, Konik said, Lululemon risks eroding its premium positioning, MarketWatch reported. The NFL collection features Lulu’s products from its Steady State men’s collection, and women’s styles from its Define, Scuba, and Align product lines.
• The NFL collection appears to target younger and male shoppers. Konik noted that Lululemon also sells footwear and Walt Disney gear featuring Mickey Mouse, though previous efforts have not achieved sustainable growth. It also risks alienating its core female customers.

What’s Next: A brand campaign accompanying the rollout of the collection, which starts today, will include former NFL players Joe Montana, Nick Foles, Ryan Clark, and Emmanuel Acho. The campaign is called “Welcome to the Fam Club.”

— Sabrina Escobar and Janet H. Cho

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—Newsletter edited by Liz Moyer, Rupert Steiner