When We Talks

How Amazon (AMZN) is reacting to the tough economy – GeekWire

GeekWire Photo Illustration

Amazon has grown dramatically over the past decade, surpassing 1.5 million employees and extending its reach into nearly every corner of commerce and society. Now, the turbulent economy is forcing the tech giant to make a series of difficult decisions, cutting back in some areas while making strategic bets in others.

It’s far from alone in facing these decisions. However, with its reach across e-commerce, physical retail, cloud computing, robotics, AI, transportation, logistics, and many other areas, Amazon is a microcosm of the larger economy. That makes it worth examining not just for its own future but for the broader implications.

On this episode of the GeekWire Podcast, we take a closer look at the forces influencing Amazon’s business, and how the company is responding.

Listen below, and continue reading for more.

Amazon is significantly slowing its employment growth. The company’s decision to pause hiring for corporate roles for the next few months is the latest example of efforts to keep its headcount in check.

The economy is taking its toll on Amazon’s financial position.

Amazon’s industry-leading cloud business isn’t immune to the effects. Amazon Web Services posted its slowest year-over-year quarterly revenue growth (27%) since the company started breaking out its cloud results, and its lowest increase in quarterly operating profit (11%) in three years.

The company is betting on long-term cloud, Prime and e-commerce growth.

Amazon has already cut back or discontinued operations in several areas.

The economic headwinds are shaping up as the biggest test yet for Amazon CEO Andy Jassy, requiring him to grapple with decisions that founder Jeff Bezos didn’t face. Ultimately, Jassy’s legacy will be determined not by what he cuts but what he builds, and whether Amazon can find its fourth pillar amid all this turmoil.

Listen above, or subscribe to GeekWire in Apple Podcasts, Google Podcasts, Spotify or wherever you listen.

Source link

Related posts

OceanGate explorers solve a 26-year-old mystery and document life near the Titanic – GeekWire

Effie Weber

Seattle child care enrollment startup LegUp gets scooped up by Kinside – GeekWire

Effie Weber

Generative AI and ChatGPT top list of key technologies for 2023 – GeekWire

Effie Weber