The founder of Amazon, Billionaire Jeff Bezos recently commented on the emerging recession and said, “ this holiday season, individuals should refrain from making heavy expenditures on electronic products like Television sets and Fridge and should focus on building as much cash reserve as possible, small scale businesses should manage their expenses and not commit to heavy high-cost financial burdens, as this may make the small businesses susceptible to the forthcoming recession”.
Like many leading economists, Bezos is aware of the impending doom of the world economy that is peeking around the corner. World trade is slowing down, and profits are becoming scarce with every passing month.
The e-commerce founder added that people should hope for the best, but also prepare for the worst. Since Andy Jassy took the reigns of Amazon as CEO last year, Bezos has reclined to an executive chair in the company.
Separately, the former Amazon CEO also said that he wishes to spend his $124 billion to lead the fight against climate change as well as to support individuals who have the capacity to unify humanity in the face of deep political and social division.
Due to the online shopping spree during the coronavirus pandemic, Amazon has doubled its workforce since the 1st quarter of 2020 to nearly 1.62 million employees worldwide just 2 years later. Since then the global retail giant has seen its profits drop by 9% each year, And for the current quarter, Bezos expects anaemic growth between 2 to 8% per year.
Like many leading technology giants like Twitter, Lyft and Meta, Amazon is now following the post covid trend of laying off employees. The present CEO of Amazon Andy Jassy refused to comment on the issue but acknowledged that the procedure is already underway and will continue early into the next year.
He added, “ this has been one of the toughest decisions of my career since I took office 18 months ago, In anticipation of the impending recession, drastic measures need to be taken for preserving the future of the company”.
According to reports from US media, nearly 10,000 employees of the platform and its various branches are at risk of being laid off, and by early 2023 impacted employees and organizations will be made aware of the decisions. He also said, “As higher-ups continue to adapt, more role reductions will occur in due course of time”.
Just 2 weeks ago, Amazon had put a hiring freeze in case of the economy was hampered. Many economists predict the world economy to slow down to a trickle as the world enters the 2nd quarter of the 21st Century thus triggering massive layoffs in the e-commerce corporation.
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