Story perspectives

Amazon Cuts SPS Jobs; Cisco AI Layoffs Boost Shares 17%

5/14/2026

Summary

Story summary

Amazon announced layoffs that cut positions in its Selling Partner Services division, which supports marketplace merchants.
Amazon will provide transitional health care, a separation payment, and outsourced job-placement services to affected workers.
Cisco announced layoffs tied to an AI-focused restructuring that it expects to cost up to $1 billion, with $450 million recorded this quarter and the rest through fiscal 2027.
Cisco’s shares rose more than 17% in after-hours trading after the announcement.

History

Historical Context

In 1993 IBM, reeling from an $8 billion loss, slashed a large portion of its staff under new CEO Lou Gerstner. The cuts followed a wave of early-1990s spin-offs, such as the 1992 formation of the IBM PC Company, signaling a shift from hardware to services. This restructuring foreshadowed later tech-sector layoffs as AI drives new cost-cutting moves.

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Story summary

Amazon announced layoffs that cut positions in its Selling Partner Services division, which supports marketplace merchants.
Amazon will provide transitional health care, a separation payment, and outsourced job-placement services to affected workers.
Cisco announced layoffs tied to an AI-focused restructuring that it expects to cost up to $1 billion, with $450 million recorded this quarter and the rest through fiscal 2027.
Cisco’s shares rose more than 17% in after-hours trading after the announcement.

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