Last Update: April 28, 2023, 02:23 AM IST
CEO Andy Jassy planned to cut a further 9,000 jobs from the online retail giant’s workforce in March, after 18,000 were furloughed in January. (file photo)
Amazon reports $3.2 billion profit on sales that grew 9 percent in the quarter to $127.4 billion
Shares in Amazon jumped on Thursday after the online retail colossus reported that it earned more money than expected in the first quarter of 2023.
Amazon reported a profit of $3.2 billion on sales, up 9 percent in the quarter to $127.4 billion.
Net income was nearly a billion dollars higher than analysts forecast, and Amazon shares rose more than 7 percent to $117.87 in after-hours trading after the earnings data was released.
“There’s a lot to like about how our teams are working for customers, especially amid an uncertain economy,” said Andy Jassy, Amazon’s chief executive.
“Our stores business continues to improve cost of service across our fulfillment network while increasing the speed of getting products into the hands of customers.”
JC plans to cut 9,000 more jobs from the online retail giant’s workforce in March after laying off 18,000 in January.
“Given the uncertain economy … and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount,” Jesse said in a memo at the time.
A smaller percentage of Amazon’s total workforce could go up to 1.5 million people in December 2022, compared to the cuts seen at some other tech giants.
Amazon’s Jesse told its employees that the additional layoffs were necessary as the company looks for a way to downsize after years of hiring.
this was largely due to corona virus The pandemic gave the Seattle-based company a huge boost when users in Amazon’s key markets turned to the internet for shopping and entertainment.
The layoffs are part of the giant’s cost-cutting drive, which also saw a halt to plans to open a new company headquarters in the Washington, DC area, although the company said it was only a temporary measure.
Revenue at Amazon’s AWS cloud computing unit rose 16 percent to $21.4 billion, but costs hit operating income, which stood at $5.1 billion compared with $6.5 billion in the same quarter a year earlier, according to the earnings report.
“Amazon’s stronger-than-expected performance for its key profit centers of AWS and advertising indicates that change may be on the way in the enterprise and digital advertising sectors,” said Andrew Lippsman, principal analyst at Insider Intelligence.
“For the first time in many quarters, there may be a little wind on the Amazon end,” he said.
“While our AWS business navigates spending companies more carefully in this macro environment, we continue to prioritize building long-term customer relationships,” Jesse said.
read all Latest Tech News Here
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
