Last update: April 28, 2023, 02:23 IST
CEO Andy Jassy outlined a plan in March to cut 9,000 more jobs from the online retail giant’s workforce, following the 18,000 cut in January. (File photo)
Amazon posted a profit of $3.2 billion on sales that climbed 9% to $127.4 billion in the quarter
Amazon shares jumped on Thursday after the online retail colossus announced it made significantly more money than expected in the first quarter of 2023.
Amazon reported a profit of $3.2 billion on sales that climbed 9% to $127.4 billion in the quarter.
Net profit was about $1 billion above analysts’ forecasts, and Amazon shares rose more than 7% to $117.87 in aftermarket trades following the release of earnings figures .
“There’s a lot to like about the way our teams are delivering to customers, especially in an uncertain economy,” Amazon Chief Executive Andy Jassy said.
“Our Stores business continues to improve the cost of service in our distribution network while increasing the speed at which we get products into the hands of customers.”
Jassy presented a plan in March to cut 9,000 more jobs from the online retail giant’s workforce, after the 18,000 cut in January.
“Given the uncertain economy … and the uncertainty that exists for the near future, we have chosen to be more streamlined in our costs and workforce,” Jassy said in a note at the time.
The layoffs represent a smaller percentage of Amazon’s total workforce, which numbered as many as 1.5 million people in December 2022, than the reductions seen at some other tech giants.
Amazon’s Jassy told employees the additional layoffs were necessary as the company sought a way to reduce its workforce after years of sustained hiring.
Much of that was caused by the coronavirus pandemic when users in Amazon’s major marketplaces turned to the internet for shopping and entertainment, giving the Seattle-based company a massive boost.
The layoffs are part of the giant’s cost-cutting drive which has also paused plans to open a new headquarters in the Washington, D.C. area, although the company said it won’t s was only a temporary measure.
Amazon’s AWS cloud computing unit saw revenue soar 16% to $21.4 billion, but costs weighed on operating profit, which was $5.1 billion against $6.5 billion in the same quarter a year earlier, according to the earnings report.
“Amazon’s better-than-expected performance for its core profit centers of AWS and advertising indicates that the enterprise and digital advertising sectors could take a turn,” said Andrew Lipsman, principal analyst at Amazon.com. Insider Intelligence.
“For the first time in several quarters, Amazon may finally have some wind at its back,” he added.
“As our AWS business manages enterprise spending more cautiously in this macro environment, we continue to prioritize building long-term customer relationships,” Jassy said.
Read all the latest tech news here
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)