Amazon posted revenue of more than $121 billion in the second quarter, up 7 percent, despite an unfavorable year-over-year comparison and a difficult economic environment. Shares of the e-commerce giant jumped 10% in after-hours trading after a slew of disappointing performances from other tech companies. The American group, however, recorded a net loss of $2 billion due to a $3.9 billion investment loss in electric car maker Rivian.
“overwork”
“Despite inflation driving up fuel, energy and transport prices, we are making progress on more controllable costs (…), in particular by improving the productivity of our sorting centers and logistics network.” said Andy Jassi, head of Amazon, citing the press release. Amazon did not disappoint in the cloud department either. its AWS service, the global leader in this market, earned 19.55 billion in revenue, which exceeded analysts’ expectations. But for the current quarter, Amazon expects operating profit, a key measure of profitability, to be between $0 and $3.5 billion, down from $4.9 billion in the same period last year.
The Seattle community is suffering “Cutting Consumer Spending and Rising Spending”, explains Insider Intelligence analyst Andrew Lipsman. In a few months, the economic environment of the technological giants has radically deteriorated. The health crisis and incarceration have led to an explosion of online habits, from consumption to work and entertainment. The digital transition continues. most platforms are gaining new users, but at a slower rate comparable to before the Covid-19 pandemic. This phenomenon is compounded by many macroeconomic constraints, starting with inflation and supply chain difficulties.
The second-largest employer in the United States after Walmart had 1.6 million workers at the end of 2021, more than double the number in 2019. But since spring, Amazon “Moved from understaffing to overwork”Brian Olsavsky, Chief Financial Officer of the group, noted. After struggling to recruit, the platform decided to slow its hiring pace at the likes of Google, Microsoft and Snap.
Source: Le Figaro
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.