While layoffs are generally seen as a negative signal regarding a company's current financial health or future outlook, in the context of a strategic cost-cutting initiative, the impact on Amazon's stock could be neutral or slightly positive in the short term. Investors may interpret these layoffs as a proactive measure to streamline operations and improve profitability, especially in units that may not be core to Amazon's long-term growth strategy. However, the negative publicity and potential impact on employee morale could offset some of the positive financial implications.