Amazon gains after the cost-cutting report!
Amazon stock soared 15% on the news of cost cutting process overview!
Review includes the devices unit, which includes Alexa and where documents show operating losses of $5 billion annually in recent years
Amazon had unprecedented growth in the pandemic but now is focused on cost-cutting, including in logistics and package delivery.
Tweet on Amazon cost cutting process
Amazon gained 15%
After report that CEO Andy Jassy has embarked on a new cost-cutting plan, part of broader plan to streamline the world’s largest e-commerce company, via @WSJ https://t.co/E4P6Jte1tr— The_Journalbiz (@the_journalbiz) November 11, 2022
WSJ reports on the internal cost cutting process at Amazon.com
Chief Executive Andy Jassy is leading a cost-cutting review of the tech giant and paring back on businesses at the company that haven’t been profitable, according to people familiar with the matter.
Amazon’s leadership is closely evaluating its Alexa business, according to WSJ. The business has more than 10,000 employees and is a major recipient of investment capital, some of the people said. Internal documents viewed by The Wall Street Journal show that in some recent years Amazon’s devices unit, which includes Alexa, had an operating loss of more than $5 billion a year.
Amazon is currently considering whether it should focus on trying to add new capabilities to Alexa, a voice assistant available on a variety of Amazon devices. Adding capabilities would require greater investment, and many customers use Alexa for only a few functions, some of the people said.
Amazon also has told employees in certain other unprofitable divisions to look for jobs elsewhere in the company because the teams they were working on were being suspended or closed
In addition, Companies spokesman said in a statement. “As part of this year’s review, we’re of course taking into account the current macro-environment and considering opportunities to optimize costs.”
