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Amazon is looking to reduce costs.

 


Amazon, the world’s largest retailer, is looking to reduce costs following its rapid expansion during the pandemic as it faces inflationary pressures and an uncertain economic outlook.

Andy Jassy, who took over as chief executive last year, is leading a cost-cutting review, The Wall Street Journal reported. He is said to be focusing on businesses that haven’t been profitable.

Amazon shocked investors in October when its third-quarter results fell short of Wall Street estimates as high inflation, and intense competition from rivals such as Walmart weighed on its core retail business.

The online retailer has slowed its warehouse openings and has yet to fill some open positions. In addition, it announced that it would close its virtual healthcare service by the end of the year and is scaling back a long-touted effort to deliver goods via small autonomous cars.

The Seattle-based company was founded by Jeff Bezos in 1994 and had about 1.5 million employees worldwide. However, two months ago, Jassy said he was resigning from recruitment.

As part of the cost review, the WSJ said that Amazon had told staff in some unprofitable divisions to look for jobs elsewhere in the company.

Other tech companies have been reducing costs. For example, this week, Mark Zuckerberg laid off more than 11,000 employees at Meta Platforms, about 13 per cent of its workforce.

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  1. Tim11 November 2022 at 17:17

    Oh, let's not even start about Mark Zuckerberg. His Meta ambitions will drag Facebook into the ground. The company has already lost tens of billions in the market and he's still not realizing that almost no one is interested in his Meta virtual reality. That service looks horrible and people won't ever want to use or pay for such a thing in its current unfinished, broken state.

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