Amazon’s growth has been remarkable over the last decade. It now employs more than 1.5 million people and is expanding its presence into almost every sector of commerce and society. The turbulent economic environment is forcing Amazon to take difficult decisions. It will have to cut back on certain areas and make strategic investments in other areas.
It’s far from alone in facing these decisions. Amazon’s influence in ecommerce, physical and cloud retail, as well its ability to use AI, robots, automation, transportation, logistics and many other areas makes it a microcosm for the bigger economy. This makes Amazon worth considering not only its future but the wider implications.
On this episode of the GeekWire Podcast, we take a closer look at the forces influencing Amazon’s business, and how the company is responding.
Continue reading by listening to the audio below.
Amazon’s employment growth is significantly slowing. The company’s decision to pause hiring for corporate roles for the next few months is the latest example of efforts to keep its headcount in check.
The economy is taking its toll on Amazon’s financial position.
Amazon’s industry-leading cloud business isn’t immune to the effects. Amazon Web Services saw its year-over-year revenue growth of 27 percent since it began publishing cloud results. It also posted the lowest quarterly operating profit increase (11%) in three decades.
Long-term growth in cloud, prime and ecommerce is the company’s goal.
Amazon already has stopped or reduced operations in many areas.
Amazon CEO Andy Jassy faces the greatest challenge yet in economic headwinds requiring him to grapple with decisions that founder Jeff Bezos didn’t face. Ultimately, Jassy’s legacy will be determined not by what he cuts but what he builds, and whether Amazon can find its fourth pillar amid all this turmoil.
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