Amazon reshapes its expansion strategy, prioritizing delivery services and Whole Foods

FloorPriceNightmare · 2026-02-05T17:00:44+00:00

Amazon is restructuring its business by closing Amazon Fresh and Amazon Go stores to focus on delivery services and expanding Whole Foods. This shift could impact around 30,000 employees but has garnered positive market response, with stock prices rising and analysts projecting significant growth.

FloorPriceNightmare

2026-02-05 17:00:44

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In a significant shift of its business model, Amazon has decided to refocus its operations by closing its retail stores Amazon Fresh and Amazon Go to strengthen its delivery service network and accelerate the expansion of its premium supermarket chain Whole Foods. This strategic reconfiguration reflects a change in the tech giant’s corporate direction.

Operational adjustments and their impact on employment

The restructuring has significant consequences for the workforce. According to reports from NS3.AI, Amazon plans to make adjustments to its staff that would affect approximately 30,000 employees. Additionally, the company has reached an agreement with claimants for a $1 billion refund related to previous customer disputes. These moves highlight the magnitude of the strategic change the company is implementing.

Market response and future outlook

Despite layoffs and operational changes, the market has responded positively to Amazon’s new expansion strategy. The company’s shares have recently increased by 2%, consolidating a 6% growth during 2026. Wall Street analysts maintain an optimistic outlook for Amazon’s future, projecting a growth potential of over 25% from the current stock price levels. This confidence suggests that the investor community views the focus on high-volume delivery services and selective expansion through Whole Foods favorably.

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