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Amazon announces revenue increase after revealing downsizing

Amazon has released the financial results pertaining to the Fourth Quarter 2022 (Q4 2022), and as expected, it closed with a further increase in revenue. Specifically, the company recorded record net income of $14.3 billion. These incomes were greatly benefited before the Christmas epics or Black Friday.

This represents a drop of 4.76% compared to the same period last year. Of course, this drop is due to the loss of valuation of the 2,300 million dollars invested in the electric truck company Rivian. If we look at the company’s total revenues for the year, they were up 9%. In other words, Amazon closed 2022 entering $149.2 billion.

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Amazon closes the year with an increase in revenue, but warns for 2023

Amazon Prime Rate 2023 Delivery Van

Of these income, Amazon Web Services (AWS), Amazon’s cloud platform, reported operating income of $5.2 billion, a slight decrease from the previous quarter, but generating revenue of $21.3 billion for the year. Amazon warned in October that companies were cutting spending on the cloud and said that trend continued into the fourth quarter. Microsoft, for its part, noted that its cloud platform had registered a “moderate consumption growth” in the last quarter.

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Amazon store sales were reduced by 2% compared to last year, which represents revenues of 64,500 million dollars. In advertising, revenue increased 19% to $11.5 billion. your service prime subscription rose 13% to $9.1 billion thanks to higher prices. On the other hand, shipping costs they increased 4% during Q4 generating about 24,700 million dollars in expenses.

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Amazon shares fell as much as 6% after breaking the news.

“In the short term, we face an uncertain economy, but we remain optimistic about the long-term opportunities for Amazon,” said Andy Jassy, ​​Amazon CEO.

“We believe that our leading customer experiences, coupled with the results of our continued work and inventiveness to improve every day, will lead to significant growth in the coming years. If we also factor in our investments and innovations in other broad customer experiences – like streaming entertainment, customer-focused healthcare, broadband satellite connectivity to more communities around the world – there are additional reasons to be optimistic about what the future holds.”

The company announced that it would tighten its belt by reducing its workforce

Layoffs Amazon and Tech Companies 2023

It was at the beginning of this year, when it was announced Amazon’s biggest downsizing in history. Specifically, he announced the dismissal of 18,000 employees. Of course, this implies only lay off 1% of your total workforce. Many of them were tied to the Amazon Services group. Namely, the team behind Alexa and Echo smart devices. Additionally, an adjustment was made in the sales and human resources section.

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These adjustments are also necessary after of the increase in hiring on the occasion of COVID and the wave of sales that was generated during the following years. Now, with a market in recession globally, it’s time to reset the template. Not just Amazon, all major carriers in the tech world have announced layoffs to adjust to the new needs From the market.

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