Amazon Faces Earnings Report After Layoffs and Debate Over $75 Million First Lady Documentary

Amazon heads into its fourth-quarter earnings release on Thursday after a week marked by large-scale job cuts, an errant internal email and heightened attention to a $75 million documentary about U.S. First Lady Melania Trump.

White House screening draws criticism

On Saturday, Chief Executive Officer Andy Jassy and an Amazon MGM Studios executive joined corporate leaders, lawmakers and celebrities at a private White House screening of “Melania.” The film, produced by Amazon MGM Studios in collaboration with the first lady, opened in theaters on Friday. The Washington, D.C., event took place only hours after federal immigration agents fatally shot urgent-care nurse Alex Pretti in Minneapolis, the second deadly incident there within three weeks. The timing prompted public condemnation from some technology workers and civil-rights advocates, who urged companies to speak out against the shootings and related immigration policies.

Apple CEO Tim Cook, who also attended the screening, later called for a de-escalation of violence without directly referencing the two deaths. Amazon has not issued a statement on the Minneapolis incidents. A company spokesperson said the documentary was licensed “because we think customers are going to love it.” Early box-office estimates from National Research Group, cited by trade publication Puck News, point to approximately $5 million in opening-weekend ticket sales across the United States and Canada.

$75 million deal raises questions

The documentary’s reported acquisition price has intensified scrutiny of Amazon’s relationship with President Donald Trump. Critics inside and outside the entertainment industry have asked whether the expenditure is intended to bolster ties with the administration. President Trump told reporters at a Washington movie premiere on Thursday that he was not involved in Amazon’s negotiations and described the film as an important depiction of life in the White House.

Amazon MGM Studios has additionally agreed to stream a three-part docuseries about the first lady on Prime Video. Some current Amazon employees have challenged the spending in internal forums, contrasting the film’s cost with the company’s ongoing efforts to reduce headcount.

Second round of mass layoffs

On Wednesday, Amazon confirmed plans to eliminate roughly 16,000 corporate positions. The move follows a cut of about 14,000 roles announced in October and forms part of Jassy’s initiative to streamline operations and concentrate resources on artificial-intelligence projects. The latest notification appeared a day earlier than intended when a message referencing “organizational changes” was mistakenly sent to cloud-computing staff, and an unrelated post by Human Resources chief Beth Galetti surfaced online.

Analysts at Citizens estimate that Amazon’s cumulative staff reductions—now around 30,000 positions—could lower annual expenses by as much as $8 billion in 2026. During the past week, some employees on a Reddit forum calculated that the $75 million paid for “Melania” could have provided approximately $4,500 to each person affected by the current round of layoffs.

Bezos and political ties

The documentary controversy comes amid renewed attention to founder Jeff Bezos’s relationship with the president. After public clashes during Trump’s first term, Bezos has attended a dinner at Mar-a-Lago, was present at the second inauguration a year ago and directed a $1 million corporate donation to the inaugural committee. Amazon also helped fund a $300 million renovation of a White House ballroom.

Separately, The Washington Post—purchased by Bezos in 2013—reported plans for newsroom layoffs that could affect sports, local and international desks. In a letter to Bezos, the paper’s White House reporters highlighted the significance of those teams and requested closer collaboration across the organization.

Imagem: Internet

Wall Street expectations

Financial performance will take center stage on Thursday when Amazon reports results for the three months ended December 31. Analysts surveyed by LSEG anticipate revenue of about $211.3 billion, an increase of roughly 13% from a year earlier. Growth is expected to come primarily from Amazon Web Services and the company’s digital-advertising division, both projected to rise around 22% year over year, according to FactSet.

KeyBanc Capital Markets this week reaffirmed a buy rating on Amazon shares and raised its price target, citing accelerating demand at AWS, helped by a recent cloud agreement with OpenAI. CNBC confirmed that Amazon is discussing an investment of up to $50 billion in the artificial-intelligence firm.

Capital spending and profitability

Amazon’s push into generative AI is driving higher infrastructure costs. LSEG data indicate capital expenditures for the quarter will likely increase 24% from the prior-year period to nearly $34.5 billion. KeyBanc analysts said that while the spending could pressure margins, management is expected to “continue looking across the organization for further efficiencies.”

Jassy has framed the cutbacks as part of a broader plan to remove bureaucracy, reinvest in growth categories and position Amazon for long-term competitiveness. The company’s headcount stood at approximately 1.5 million full-time and part-time employees worldwide as of the third quarter.

Industry context

Amazon’s earnings will conclude the current reporting cycle for major technology companies, though semiconductor maker Nvidia is scheduled to publish its results later in February. The spotlight on the e-commerce and cloud provider comes as broader market sentiment has improved; the S&P 500 recently closed above 5,000 points for the first time, according to data compiled by Reuters.

Investors will watch for commentary on consumer spending trends, advertising demand and the pace of AI adoption. They will also look for updates on regulatory matters, including ongoing antitrust scrutiny in the United States and European Union.

Crédito da imagem: Jeenah Moon / Reuters