Amazon Cuts 16,000 Jobs While Spending $75M on Melania Documentary

16,000 employees laid off. $75 million spent on a documentary about the First Lady. The math doesn't add up at Amazon, and employees aren't staying quiet about it.

CEO Andy Jassy attended a private White House screening of "Melania" last Saturday, just days after announcing another massive round of corporate layoffs. This follows 14,000 job cuts in October, bringing Amazon's total workforce reduction to 30,000 in less than four months.

Tone-Deaf Timing

The optics couldn't have been worse. Hours before the White House screening, federal immigration agents fatally shot urgent care nurse Alex Pretti in Minneapolis—the second such deadly incident in three weeks. While most tech leaders remained silent, Amazon employees took to Reddit to voice their frustration.

"With $75 million we could have given each laid off employee about $4,500," wrote one user. "But instead we spent it on the ridiculous Melania movie. Ashamed to work at Amazon."

Apple CEO Tim Cook, who also attended the screening, later issued a statement calling for "deescalation" but avoided mentioning the fatal shootings directly. Amazon has offered no comment on either the violence or employee criticism.

The Numbers Don't Add Up

Amazon MGM Studios claims they "licensed the film for one reason and one reason only—because we think customers are going to love it." But early projections suggest otherwise.

Puck News reports the documentary is expected to earn just $5 million during its opening weekend—a fraction of Amazon's investment. Industry insiders are questioning whether the company is "buying something else for their money," as documentary filmmaker Julie Cohen told The New York Times.

The film's weak ticket sales make the price tag even more puzzling. For a company aggressively cutting costs to fund AI investments, spending $75 million on a likely money-losing documentary raises questions about true motivations.

Bezos's Political Pivot

This controversy reflects Jeff Bezos's broader strategy shift with the Trump administration. After being repeatedly attacked during Trump's first term, the Amazon founder has taken a conciliatory approach this time around.

Bezos dined with Trump at Mar-a-Lago, attended the inauguration, and Amazon donated $1 million to Trump's inaugural fund. The company even helped pay for Trump's $300 million ballroom renovation. It's a stark contrast to the adversarial relationship of 2017-2021.

"I'm not involved in that. That was done with my wife," Trump told reporters, though he called the documentary "very important" and "a big deal."

Cost-Cutting Contradictions

Citizens analysts expect Amazon's 30,000 job cuts to generate up to $8 billion in cost savings for 2026. Jassy has framed the layoffs as part of efforts to "remove bureaucracy" while investing heavily in artificial intelligence.

But employees see a different picture: a company willing to spend lavishly on political influence while eliminating their livelihoods. The contradiction has damaged morale across Amazon's corporate divisions, with some workers previously telling CNBC that rolling layoffs have created a climate of uncertainty.

Earnings Under Scrutiny

Amazon reports fourth-quarter results Thursday, with analysts expecting 13% revenue growth to $211.3 billion. AWS and digital advertising are projected to drive growth with roughly 22% expansion each.

The company's AI push continues with talks to invest up to $50 billion in OpenAI, while capital expenditures are expected to rise 24% to nearly $34.5 billion. KeyBanc analysts maintain their buy rating, citing AWS acceleration from the OpenAI partnership.

Yet investors will likely focus as much on Amazon's priorities as its profits. The Melania investment represents a tiny fraction of Amazon's $574 billion market cap, but its symbolic weight is enormous.

The answer may determine not just Amazon's relationship with the Trump administration, but the broader tech industry's approach to political engagement in an increasingly polarized landscape.