A look at Amazon’s impact on jobs.
The price cuts have hit Amazon’s largest and most profitable division hard.
Amazon said Wednesday that its latest round of price cuts, including the $99 price hike, will save about 7,500 jobs across the US.
But those job losses could still be reversed if Amazon can find ways to save more money elsewhere.
Amazon is the largest employer in the country and employs about a quarter of the U.S. workforce.
The retailer’s stock was up about 2.5% Thursday morning, though it was still trading below $100 per share.
The cuts, which began Oct. 7, have helped Amazon earn a profit of $13.7 billion for the quarter.
That beats Wall Street analysts’ average estimate of $12.4 billion.
The cuts are expected to have an immediate impact on Amazon’s bottom line, which is expected to fall to $1.6 billion from $2.6 trillion a year ago.
But they are also expected to generate more than $2 billion in savings in the long run.
The $99 deal also was the biggest of Amazon’s new price cuts.
Amazon said Wednesday it had eliminated 10,000 jobs over the past year, bringing its total number of jobs lost to roughly 13,000.
The new price cut will eliminate about half of those positions, the company said.
Amazon also said it is slashing prices for its Kindle Fire tablets and Fire TV streaming devices.
The Amazon Kindle Fire was $199 last year and is set to go up to $399 this year.
The Amazon cuts are part of the retailer’s strategy to get customers back to buying books and DVDs through online retailers.
Amazon has been trying to convince customers to give its e-book business a shot, saying it is still profitable.
The Amazon price cuts are also a sign of weakness for Apple, which said its fourth-quarter earnings missed Wall Street expectations by a penny or more.
Apple said it lost $4.4 trillion on revenue of $57.6bn, or $1,080 per share, as the iPhone maker lost sales to tablets and other non-digital devices.
Apple said it expected to sell about $1 trillion in iPhones in the quarter, up from $900 billion last year.
Apple also said its iPhone sales fell 3.2% to nearly 3.3 million, a figure that was down from 4.4 million in the same quarter a year earlier.
Analysts polled by FactSet expected Apple to report revenue of about $43.5 billion, or about $2,100 per stock share, on revenue from its iPhone business.
Analysts also said they expect Apple to release its second-quarter profit Thursday.
Apple’s stock rose 2.3% Thursday to $158.84.