I wrote – Hadeel Al-Banna
Monday, 06 February 2023 02:00 AM
New coverage provided by Al-Youm Al-Sabea TV, on Amazon’s announcement of its results for the fourth quarter of 2022, which revealed its first unprofitable year since 2014, as global trade currencies lost $ 2.7 billion despite the growth of holiday season sales by 9%..
Although the outbreak of the Corona virus, since 2020, has served as a great impetus to revitalize online shopping, and Amazon has continued to grow and its profits have doubled over the past two years.. However, the e-commerce giant was unable to rent and build warehouses quickly enough to meet the growing demand for online shopping. Internet.
Now, as the epidemic situation is gradually over, consumers are starting to return to physical stores. Moreover, with the rise in inflation, customers are also more reluctant to spend, and as the online shopping revolution in the epidemic era is coming to an end, Amazon’s profits have also declined..
The company explained that the biggest reason for its losses is that it suffered losses throughout the year due to its huge investments in the electric car manufacturing company. Rivianthe automaker’s value fell in 2022 and also affected Amazon’s revenue.
And Amazon has already started rolling out trucks Rivian Electrical Connectivity and has a 20% stake in the automaker, Inc Rivian One of the largest investments in US history and wanted to repeat the success TeslaHowever, in 2022, the automaker’s share price fell 82% as it made pricing errors and didn’t meet its growth targets..
And following making up for the losses, the company began to reconsider its warehouse expansion plans, as many reports tracked cancellations, closures, and delays. Amazon CEO Andy Jassy appeared on a quarterly call with investors to state that his top priority was cutting costs in operations. the company..
“It’s important to remember that over the past few years, we’ve taken the fulfillment centric footprint we’ve built over 25 years and doubled it in just two years,” Jassy said. UPS … Just for these networks to work, it took everything we had“.
Last month, Amazon announced that it expects to cut regarding 5% of the company’s workforce (18,000 jobs).
In a blog post, Jassy claimed the company’s “uncertain economy” and pandemic-era hiring rush were the reasons behind such a decision..