Morning Brief
Amazon cuts 14,000 jobs, OpenAI restructures, Fed meeting begins
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Show notes
US stocks edge higher as the Federal Reserve kicks off its two-day policy meeting and Big Tech earnings loom. Amazon (AMZN) announced it will cut 14,000 jobs across logistics, cloud, payments, and gaming — its most extensive layoffs since 2022 — as CEO Andy Jassy pushes to make the company “leaner and faster” through AI-driven automation. UPS (UPS) also said it will cut 34,000 positions as part of a massive restructuring, closing nearly 100 facilities to reduce costs. Meanwhile, PayPal (PYPL) rallied after strong earnings and news of a significant partnership with OpenAI to integrate its digital wallet directly into ChatGPT, allowing in-app payments starting in 2026. In breaking news, OpenAI finalized its recapitalization with Microsoft (MSFT), creating a new $130B for-profit entity under the OpenAI Foundation and granting Microsoft a 27% stake valued at $135B. The agreement includes a $250B Azure commitment and exclusive IP rights until artificial general intelligence is achieved. Microsoft stock rose 3.7% on the news.
Takeaways:
Amazon to cut 14,000 jobs across multiple divisions in biggest layoffs since 2022
UPS to eliminate 34,000 positions as part of primary transformation strategy
PayPal surges on strong earnings and new ChatGPT payment integration
OpenAI finalizes recapitalization; Microsoft gains 27% stake valued at $135B
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