Why Amazon Stock Stumbled Today
It was a fairly eventful Hump Day for Amazon (NASDAQ: AMZN), and by the end of it the company's stock price had slumped by 0.6%. On one hand, investors were cheered by news that the giant retailer is making good on its promise to save costs -- albeit in the form of job cuts. On the other, they were dismayed about news of a government agency's worker safety allegations.
Reuters reported Wednesday morning that Amazon will enact job cuts to its workforce in the U.S., Canada, and Costa Rica by the end of the day. Citing an internal company memo to staff it had seen, the news agency added that these are part of an announced plan for the retailer to dismiss 18,000 workers in an effort to reduce costs.
While Amazon is still wildly successful, its margins in the challenging retail space have always been thin.
Source Fool.com
