Amazon is reporting its first unprofitable year since 2014. The company lost $2.7 billion last year, this was despite holiday-season sales growing 9%.
For Amazon, the loss on its investment comes right when it contends with the need to recalibrate after a pandemic-era upsurge.
During the pandemic, the appetite for online shopping seemed to promise exponential growth, and many believed the habit changes could be permanent. Amazon couldn't hire and built warehouses fast enough; and kept growing. But then people returned to physical stores, switched from cocooning to travel and outings, and eventually got more hesitant to spend as inflation rose.cancellations, closures and delays. Andy Jassy, in a rare Amazon CEO appearance on a quarterly call with investors, said his top priority was cutting costs in the company's operations.
"It's important to remember that over the last few years we took a fulfillment-center footprint that we built over 25 years and doubled it in just a couple of years," he said."We at the same time built out a transportation network, for last mile, roughly the size of UPS. ... Just to get those functional, it took everything we had."
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Amazon expected to post first unprofitable year since 2014 and worst loss since the dot-com bustAmazon reported roughly $3 billion in total losses through the first nine months of 2022, and Wall Street analysts on average are projecting about $2 billion in net income in the holiday season, according to FactSet.
Read more »
Amazon stock falls after earnings miss shows worst annual loss on record, least profitable holiday quarter since 2014Amazon reported its least profitable holiday quarter since 2014, leading to the biggest annual loss on record for the company. $AMZN reported a holiday profit of $278 million, or 3 cents a share, up from $1.39 a share a year ago:
Read more »
Rivian Going Racing At 2023 Pikes Peak International Hill Climb | CarscoopsThe Race to the Clouds is going to feature the 830 hp electric pickup for the first time
Read more »
Rivian Celebrates Production Milestones And Progress: 25,000 EVsRivian's VP of Manufacturing Tim Fallon shared this look back at 2022 - the company's first full year of production, and a view ahead at 2023.
Read more »
Rivian to lay off 6% of its workforce as EV price war concerns growThe CEO of EV maker Rivian told employees that the company will make the layoffs as the company refocuses to conserve cash.
Read more »
Rivian Initiates a Second Round of Layoffs, Cutting 6% of WorkforceIn a note to employees sent Wednesday, Chief Executive RJ Scaringe said Rivian plans to trim another 6% of its workforce.
Read more »