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These cuts are heavily focused on middle management as CEO Andy Jassy tries to undo some of the aggressive pandemic era hiring and getting the company to move faster.

And you can ignore the AI factor here as well.

Andy Jassy said a few months ago that artificial intelligence tools would lead to more job losses due to the automation of roles ranging from routine administrative tasks to coders.

Now, you know, Amazon is the second largest employer amongst private companies.

They have more than 1.5 million people on their payroll, but more than 1 million of those are hourly workers in warehouses and logistics.

Those jobs aren't being impacted by these cuts.

But long-term though, even those jobs aren't safe.

Amazon has previously said it plans to replace hundreds of thousands of warehouse jobs with robots with a long-term goal of automating as much as 75% of its operations.

And by the way, while all of this cost cutting is happening, Amazon is spending more and more on AI.

The company recently raised its 2026 capital expenditure forecast to $125 billion, which is the highest AI and infrastructure spending plan amongst all the mega cap tech companies.

What's interesting though, is that Amazon stock has been the worst performing out of all the Mac sevens in the past 12 months.

We'll learn more about Amazon's finances and CapEx plans next week when they report earnings.

Let's talk about some stocks making moves today.

Shares of Starbucks are popping this morning after the coffee giant delivered better than expected earnings

and showed real signs that its turnaround is finally working.

Revenue was up 6% in Q4 to nearly $10 billion, beating estimates.

Same-store sales jumped 4% globally and 4% in the US, which was the strongest growth since late 2023.

Starbucks says they're seeing more customers come through the door as well.

Store traffic grew in Q4 for the first time in two years.

Now, it wasn't a perfect quarter.