Latest news with #AndyJassy
Entrepreneur
36 minutes ago
- Business
- Entrepreneur
Amazon Tells Employees to Relocate to Main Hubs or Resign
Amazon says the move to bring teams together will make them more "effective." Amazon is giving some employees a choice: relocate or resign. Bloomberg reports that Amazon is ordering thousands of workers on several U.S. teams to move to main hubs in Seattle, Washington, Arlington, Virginia, and Washington, D.C. Amazon has 1.56 million full-time and part-time employees spread across its global business, including 350,000 corporate workers. The effort to get some employees to relocate has been taking place "for more than a year now," as "some teams have been working to bring their teammates closer together to help them be as effective as possible," an Amazon spokesperson told Bloomberg. Related: 'Not a Cost Play': Amazon CEO Clarifies Why Employees Have to Come Back to the Office One Amazon employee shared in the company's internal messaging platform, in messages viewed by Bloomberg, that their manager gave them 30 days to decide whether to relocate or resign. They had 60 days after that to begin the relocation process or to leave the company — and if they chose the latter, they would not receive severance pay. Amazon CEO Andy Jassy. Photo by Michael M. Santiago/Getty Images The mandate means that some workers will have to move across the country. Instead of rolling out the requirement through mass emails, Amazon is informing employees that they must relocate through one-on-one meetings and town halls. Amazon workers already face uncertainty about their jobs being replaced in the next few years by AI. Amazon CEO Andy Jassy sent a memo to staff earlier this week that he expects Amazon's workforce to decrease "in the next few years" as AI automates tasks, prompting concerns from employees about possible layoffs in the coming years. Amazon is currently using AI in its warehouses to improve delivery speed and has given its customer service chatbot AI capabilities. Related: Amazon Cloud CEO Predicts a Future Where Most Software Engineers Don't Code — and AI Does It Instead Amazon is spending heavily on AI, and plans to keep investing in the technology. In a quarterly earnings call in February, the company disclosed that it plans to spend about $105 billion in capital expenditure this year, with most spending going towards AI. Earlier this year, Amazon began requiring employees to work in the office five days a week, leading some to look for other jobs with remote work options. Amazon has laid off more than 27,000 employees since 2022 to cut costs.
Yahoo
2 hours ago
- Business
- Yahoo
The 2 Best Stocks to Invest $1,000 Right Now
Amazon's workforce reduction could be going into hyperdrive. Equity ownership will be key in an AI-driven world. While Realty Income isn't pioneering new technologies, its business model is stable and recession-proof. 10 stocks we like better than Amazon › We are in a pivotal moment where new technologies like artificial intelligence (AI) and robotics could dramatically change the job market and make it harder to build wealth through employment. It is still unclear how this will play out over the long term. But this trend means it is more important than ever for people to acquire equity in public stocks to maintain access to the wealth-creating potential of big businesses. Let's explore why a $1,000 bet on shares in Amazon (NASDAQ: AMZN) or Realty Income (NYSE: O) could help investors preserve and grow their portfolios in this rapidly evolving economic landscape. With a market cap of $2.29 trillion, Amazon is already one of the largest companies in the world, and it isn't hard to see why. The diversified technology giant has had its fingers in many different megatrends, ranging from e-commerce to cloud computing, allowing it to achieve an incredible level of scale. Generative AI could unlock the next leg of growth. Amazon's AI strategy has two parts. One side focuses on providing computing power to other enterprises through its cloud services segment, Amazon Web Services (AWS). The second involves using AI technology internally to boost business efficiency and customer satisfaction. According to CEO Andy Jassy, Amazon is already using generative AI in "virtually every corner" of its operations. Much of these efforts focus on relatively minor improvements like shopping assistants and automated product detail pages. But investors should probably be most excited about the potential for workforce reductions. Management believes AI will allow Amazon to shrink its workforce even further over the coming years, allowing for dramatic profit growth even if its top line plateaus. With a forward price-to-earnings (P/E) multiple of 33, Amazon stock trades for a slight premium over the S&P 500's average of 29. But that looks fair, considering the company's dominant brand and profit growth potential. Unlike Amazon, Realty Income probably won't get a massive direct boost from AI technology -- although it has partnered with Digital Realty to build data centers. Nevertheless, the company is an excellent bet in this changing economy because its stable and diversified real estate portfolio helps ensure its business can thrive, no matter what happens. Since launching with its first client (a Taco Bell restaurant) in 1969, Realty Income has grown to become a behemoth in the real estate investment trust (REIT) industry, managing a portfolio of around 15,600 commercial properties across the U.S. and Europe. Its revenue streams are safe and reliable because of its use of net leases, which shift operational expenses like property tax, maintenance, and insurance to the tenant. The company also focuses on consumer defensive clients like grocery stores, dollar stores, and auto repair shops, which should maintain their business strength, even in a bad economy. In recent years, high interest rates have caused Realty Income's shares to underperform because of its capital-intensive business model. That said, it has continued to reliably increase its dividend payout, which now stands at a whopping 5.6% -- well above the S&P 500's average of 1.27%. Amazon and Income Realty are both excellent places to put $1,000, and they would fit nicely into a diversified portfolio. That said, they serve different investment strategies. Despite its vast size, Amazon is still the more growth-oriented pick because of its ability to implement AI-driven improvements to its operations. Realty Income is better for investors who want a safer and more defensive stock that will generate most of its returns through its large dividend payment. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Ebiefung has positions in Realty Income. The Motley Fool has positions in and recommends Amazon, Digital Realty Trust, and Realty Income. The Motley Fool has a disclosure policy. The 2 Best Stocks to Invest $1,000 Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Business
- Yahoo
Almost a Third of Eurozone's U.S. Trade Surplus Is Due to U.S. Firms, Says ECB
Almost a third of the eurozone's goods trade surplus with the U.S. is accounted for by sales of products manufactured by the affiliates of American businesses, which also account for most of the eurozone's deficit in the trade in services, the European Central Bank said Friday. In its latest Economic Bulletin, economists at the central bank said that should the activities carried out by those affiliates be moved back to the U.S. in response to higher tariffs or changes to U.S. tax policy, the eurozone economy would be smaller, but the impact on employment and incomes would likely be limited. Surging Silver Prices Prompt Americans to Empty Jewelry Boxes and Coin Jars Home Depot Bid Kicks Off Battle for $5 Billion Building-Products Company How Do You Build a $500 Million Coffee Chain? By Selling Matcha to Teens. The Real Message Andy Jassy Is Sending to Employees on AI Don't Fall in Love With AI, and Other Life Rules for Graduates 'Over a longer period, productivity may suffer if the domestic economy is no longer gaining the positive spillovers,' the ECB's economists wrote. The ECB's research highlights the complexity of trade and investment relations between the eurozone and the U.S., and the outsized role played by Ireland in the trans-Atlantic economy. Many of the U.S. firms that contribute to the eurozone's surplus in goods are based in Ireland, and manufacture pharmaceuticals. But they also import services from the U.S. such as the use of intellectual property, while sending large profits back to their American shareowners. The ECB said that in 2024, the flows of goods, services and profits between the U.S. and the eurozone broadly evened out, even if the eurozone had a large surplus in the trade in goods. 'The euro area current account with the United States was nearly balanced in 2024, as the increasing surplus in goods trade was almost entirely offset by deficits in services trade and foreign direct investment income,' the ECB said. The eurozone operations of U.S. multinational enterprises contributed 'significantly' to those flows, the ECB said. Its economists estimated that 30% of the eurozone's surplus in goods was due to the sales of U.S. businesses, while those same companies accounted for 90% of the eurozone's services deficit. 'The widening goods trade surplus vis-à-vis the United States is driven mostly by a pronounced increase in exports of pharmaceutical products, which are mostly attributed to trade flows of Irish affiliates of U.S. MNEs,' the ECB said. While Ireland can offer skilled workers familiar with U.S. regulatory requirements to the pharmaceuticals industry, it is also attractive as a way of lowering their tax bills. President Trump has made it clear that he is unhappy that such a large share of pharmaceutical production for U.S. consumption is located overseas. The ECB's economists warned that higher tariffs on imports from the eurozone could lead U.S. businesses to move some of their production back home or to other locations. However, while that would reduce the size of the eurozone economy, the ECB said it would have a much smaller impact on employment and incomes because those activities are highly capital intensive rather than job-rich, and most of the profits are sent back to the U.S. Write to Paul Hannon at How Hackers Are Turning Tech Support Into a Threat SpaceX's Starship Explodes During Ground Test Oil Prices Rally, Stock Futures Fall in Holiday-Thinned Trading Food, Agriculture Leaders Sound Warnings on MAHA Overreach OpenAI Changes Price Structure for Business Version of ChatGPT Sign in to access your portfolio
Yahoo
2 hours ago
- Business
- Yahoo
Japan Looks to Cut Issuance of Superlong Government Bonds
TOKYO—Japan's Ministry of Finance plans to reduce its issuance of superlong Japanese government bonds, after a rapid rise in long-end yields alarmed markets. At a meeting with primary JGB dealers Friday, the finance ministry sought feedback on its plan to cut supply of 20-year bonds by 200 billion yen, equivalent to $1.37 billion, per sale and 30- and 40-year notes by 100 billion yen each at every auction through March 2026. The reductions would start in July. Surging Silver Prices Prompt Americans to Empty Jewelry Boxes and Coin Jars Home Depot Bid Kicks Off Battle for $5 Billion Building-Products Company How Do You Build a $500 Million Coffee Chain? By Selling Matcha to Teens. The Real Message Andy Jassy Is Sending to Employees on AI Don't Fall in Love With AI, and Other Life Rules for Graduates To balance the issuance amounts, the ministry also plans to increase issuance of two-year and other shorter-dated debt, it said. The MOF's issuance plan for superlong bonds has been in the spotlight since yields hit multiyear highs recently, reflecting a lack of investor demand and concerns about the cost of repaying the government's enormous debt. Fiscal sustainability has been a longstanding challenge for Japan, which has government debt double the size of its economy. In May, the yield on 40-year JGBs rose to 3.675%, the highest since 2007 when the ministry started issuing the ultralong note. The 30-year yield has also hit a record of 3.185%. Finance Minister Katsunobu Kato has cautioned that rising yields could increase interest payments and ramp up fiscal pressure, while noting that there have been no problems selling JGBs to investors. The government will maintain close communication with market participants and make efforts to ensure credibility in its fiscal health, Kato has said. The reduction of supply in the superlong zone will likely ease the threat of a yield spike, but economists say Japan will keep facing fiscal risks in the medium to long run, especially amid domestic political uncertainty. Although Prime Minister Shigeru Ishiba's fiscal policy stance may not change significantly either before or after the coming Upper House election, his minority government is under pressure from opposition lawmakers. 'As the main opposition parties are advocating for a consumption tax reduction, potential risks remain,' Mizuho Securities economists said in a note. Write to Megumi Fujikawa at How Hackers Are Turning Tech Support Into a Threat SpaceX's Starship Explodes During Ground Test Oil Prices Rally, Stock Futures Fall in Holiday-Thinned Trading Food, Agriculture Leaders Sound Warnings on MAHA Overreach OpenAI Changes Price Structure for Business Version of ChatGPT
Yahoo
2 hours ago
- Automotive
- Yahoo
Carmax Posts Higher Profit, Revenue
Carmax logged higher profit and sales in its fiscal first quarter as the company sold more cars, despite slightly lower prices. The Richmond, Va., used-car retailer on Friday posted a profit of $210.4 million for its three months ended May 31, compared with a profit of $152.4 million a year earlier. Quarterly earnings came in at $1.38 a share, topping the $1.16 a share that analysts polled by FactSet expected. Surging Silver Prices Prompt Americans to Empty Jewelry Boxes and Coin Jars Home Depot Bid Kicks Off Battle for $5 Billion Building-Products Company How Do You Build a $500 Million Coffee Chain? By Selling Matcha to Teens. The Real Message Andy Jassy Is Sending to Employees on AI Don't Fall in Love With AI, and Other Life Rules for Graduates Revenue rose 6.1% to $7.55 billion, just ahead of the $7.5 billion that analysts modeled. Combined retail and wholesale used-unit sales came in at 379,727, marking a 5.8% increase from the prior year's first quarter. Retail sales grew at a faster rate than wholesale. Same-store used-unit sales increased 8.1% from last year. The average selling prices of used and wholesale vehicles fell 1.5% and 1.7%, respectively, from last year, though this decrease was more than offset by higher sales volumes. Chief Executive Bill Nash said Carmax benefits from its customer-centric car-buying and selling experience: 'This is a key differentiator in a very large and fragmented market that positions us to continue to drive sales, gain market share and deliver significant year-over-year earnings growth for years to come.' Shares rose 8.8%, to $69.99, in premarket trading. Write to Connor Hart at How Hackers Are Turning Tech Support Into a Threat SpaceX's Starship Explodes During Ground Test Oil Prices Rally, Stock Futures Fall in Holiday-Thinned Trading Food, Agriculture Leaders Sound Warnings on MAHA Overreach OpenAI Changes Price Structure for Business Version of ChatGPT Sign in to access your portfolio
