// Amazon CEO Andy Jassy is leading a cost-cutting review with a focus on its unprofitable businesses
// It is understood that some employees have been redeployed to more profitable areas
Amazon boss Andy Jassy is leading a cost-cutting review in the face of soaring inflation.
The online giant has come under pressure to rein in spending as shoppers cut back.
In the past two quarters, Amazon’s revenue had grown at roughly 7%, its slowest in nearly two decades, and it warned that Christmas sales would be weaker this year.
The online retailer and cloud firm’s shares have plummeted more than 40% this year.
Investors reacted positively to news of the cost-cutting with shares rising 12% yesterday.
Jassy will focus his efforts on businesses that have never been profitable, according to The Wall Street Journal, including its Alexa division.
Amazon spokesman Brad Glasser told the publication: “Our senior leadership team regularly reviews our investment outlook and financial performance, including as part of our annual operating plan review, which occurs in the fall each year.
“As part of this year’s review, we’re of course taking into account the current macro-environment and considering opportunities to optimise costs.”
Amazon is understood to have told employees in some unprofitable units to look for jobs elsewhere in the company, and is redeploying staff from certain teams to more profitable areas.
It is also scrapping teams in areas such as robotics and retail, the WSJ reported.
Just last week, Amazon confirmed it had put a freeze on corporate recruitment as it grapples with an “unusual macro-economic environment”.
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Amazon vice president of people experience and technology Beth Galetti said: “We anticipate keeping this pause in place for the next few months, and will continue to monitor what we’re seeing in the economy and the business to adjust as we think makes sense.”
Galetti said Amazon was balancing its hiring and investment with “being thoughtful about this economy”.
The cost-cutting initiatives at Amazon follow the news that Facebook owner Meta is cutting 11,000 jobs, or 13% of its global workforce.
Amazon has also scaled down or closed several of its experimental units, such as its autonomous robot concept, Scout.
Meanwhile, it flagged to investors that capex spend on logistics would be $10bn lower than in 2021.
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