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Amazon and Meta cut jobs while investing billions in AI, revealing different profit strategies for 2027.

Market News
12 Oct 2026
24/7 Wall Street
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Neutral
Amazon and Meta cut jobs while investing billions in AI, revealing different profit strategies for 2027.

Amazon and Meta are both reducing staff as they invest heavily in AI, but their approaches differ significantly. Amazon is automating its operations and selling AI tools to other companies, boosting AWS revenue by 37% and expanding its robotic workforce. Meta, meanwhile, is replacing some workers with AI talent but faces margin pressure from severance and legal costs. Amazon’s strategy of cutting costs and selling AI services has led to stronger market performance, while Meta’s future depends on improving margins and AI-driven ad growth in 2027.

The contrasting strategies of Amazon and Meta in AI investment are visible in their market performance on Pluang as of Oct 12, 2026, 18:11 WIB. Amazon trades at USD 261.99 with a slight 0.17% decline, reflecting steady investor confidence despite job cuts. Meanwhile, Meta's stock is up 1.66% at USD 730.58, showing some positive market reaction to its AI talent shift and margin challenges. Amazon's market cap stands at $2.83 trillion, significantly larger than Meta's $1.83 trillion, highlighting differing scales and investor perceptions.

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