Amazon’s Layoffs Helping Fund Growth

Last week, Amazon (NASDAQ: AMZN) announced its quarterly results that continued to outpace market expectations. The company is investing significantly in future offerings and recently announced the acquisition of Globalstar, the biggest acquisition it has ever made. Earlier this week, it also announced plans to launch its logistics network to all businesses.

Amazon’s Financials

Amazon’s first quarter revenues grew 17% to $181.52 billion, exceeding analyst estimates of $177.30 billion. EPS of $2.78 was also significantly higher than the analyst expectations of $1.64.

Revenues from Amazon Web Services (AWS) grew 28% to $27.6 billion, ahead of analyst estimates of $36.6 billion. Advertising services revenues grew 24% to $17.2 billion, also ahead of analyst estimates of $16.9 billion.

Amazon expects second quarter revenues to be $194-$199 billion, compared with analyst estimates of $188.9 billion.

The stock is currently trading at $272.07 with a market capitalization of $2.9 trillion. It touched a 52-week high of $278.56 this week after announcement of its results. The stock has recovered from the 52-week low of $183.85 that it was trading at a year ago.

Amazon’s Globalstar Acquisition

Earlier this month, Amazon anounced plans to acquire Globalstar, a mobile satellite services provider, for an estimated $11.6 billion. This is Amazon’s largest acquisition to date. Louisiana-based Globalstar was founded in 1991 and operates a fleet of low-Earth orbit (LEO) satellites providing mobile voice and data services globally. Over time, it has evolved from satellite telephony into broader data, IoT, and spectrum-based services, including enabling Apple’s satellite messaging features. Through the acquisition, Amazon plans on gaining access to Globalstar’s licensed spectrum, satellite infrastructure, and direct-to-device (D2D) capabilities, to accelerate its own LEO offerings.

The combined entity will be integrated into Amazon’s Leo, formerly Project Kuiper, thus allowing Amazon to offer cellular connectivity directly to smartphones without ground towers and extend coverage globally. Amazon aims to begin commercial service for Leo in the third quarter of this year. It plans to operate Globalstar’s assets along its own constellation to create a unified satellite network spanning broadband and mobile connectivity, while also deepening partnerships with mobile operators and companies like Apple. Prior to the acquisition, Globalstar had listed on the Nasdaq in 2006 at a valuation of nearly $1.5 billion. For the year ended December 2025, it had generated $273 million in revenues with a diluted loss per share of $0.15.

Amazon’s Logistics Business

Continuing with its business expansion, Amazon announced this week that it was opening its logistics network to other businesses. Known as Amazon Supply Chain Services, Amazon will now allow companies across industries to use the supply-chain network for their own purposes. The service will extend Amazon’s entire portfolio of freight, distribution, fulfillment, and parcel shipping solutions to businesses of all types and sizes.

Amazon had built the network initially to expand its retail operations and to support independent selling partners worldwide. Its transportation network includes a fleet of 80,000+ trailers, 24,000+ intermodal containers, and 100+ aircrafts. The service is already being used by companies like Procter & Gamble to transport raw materials to production facilities and move finished goods across its distribution network, 3M to move products from its manufacturing sites to distribution centers worldwide, Lands’ End to fulfill orders across multiple sales channels, and American Eagle Outfitters to deliver online orders from its American Eagle and Aerie website directly to customers nationwide.

Amazon did not comment on the revenues it expects from the service, but its presence will directly compete with the likes of UPS and FedEx along with other logistics players like Maersk Logistics and GXO Logistics. Some believe that this expansion will focus on the business-to-business shipping market that is traditionally a high-margin segment for logistics firms where deliveries tend to be denser, more predictable, and less expensive to serve than consumer shipments.

Amazon’s Layoffs

Meanwhile, like other tech players, Amazon continues to reorganize itself through large scale layoffs. It finished the quarter with 1.57 million employees globally, dropping by 1,000 employees since the fourth quarter. At the start of the first quarter, Amazon had announced plans to lay off 16,000 employees, after announcing a 14,000 employee layoff in October last year.

As of April 2026, the global tech industry has recorded 78,557 layoffs, with 76.7% occurring in US companies. While giants like Oracle (25,000+), Amazon (16,000), and Block (4,000) lead the charge, a disturbing pattern has emerged.

According to research by Alan Cohen (RationalFX), nearly half of these job losses are now explicitly tied to “AI Restructuring.” However, a deeper analysis suggests that AI is often being used as an “AI-as-an-excuse” narrative to justify aggressive cost-cutting and boost sagging stock prices. Companies like Oracle have automated the termination process itself, firing thousands via 6:00 AM emails—a cold-blooded approach that reflects a total deficit of empathy and human kindness.

The 1Mby1M Perspective: Stop Being the Victim

There is only one permanent solution to this trend of mass layoffs and “AI-driven” displacement: Learn to become an entrepreneur. You don’t have to build a “Unicorn.” You just need to solve a real problem, build a sustainable business, and create your own livelihood. This tsunami of layoffs will continue; paralysis is not a solution. * If you have been laid off: Now is the time to pivot your skills toward a venture you own.

If you still have a job: Now is the perfect time to consider bootstrapping a startup with a paycheck before the next 6:00 AM email arrives.

Take Action Now

• For the Displaced: Equity-Free Accelerator for Laid-Off Techies | 1Mby1M
• For the Part-Time Founder Hedging Against Layoffs: Bootstrap with a Paycheck through 1Mby1M
• Free Mentoring: Join our Free Mentoring Roundtables for Startup Founders to get direct feedback on your idea.
• Rapid Validation: Use the 1Mby1M AI Mentor to stress-test your business model 24/7.

Master the Strategy: Enroll in the Udemy AI Mentor Prompt Course to learn how to use AI to build—not replace—your future.

About 1Mby1M:

One Million by One Million (1Mby1M) is the first global virtual accelerator in the world, founded in 2010 by Silicon Valley serial Entrepreneur Sramana Mitra. It offers a fully online entrepreneurship incubation, acceleration and education resource for solo entrepreneurs and bootstrapped founders working on tech and tech-enabled services ventures.

1Mby1M does not charge equity, offers an AI Mentor available 24/7 in 57 languages, and offers a compelling alternative to Y Combinator and other equity accelerators.

Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article. I am an investor in this company.