Annual loss of $30 billion, layoffs of 18000 people! The world's largest e-commerce group is in deep trouble
AD |
As the world's largest e-commerce company, Amazon was once a leading international e-commerce enterprise that domestic e-commerce companies competed against. In fact, in addition to e-commerce services, Amazon also involves production and manufacturing, chips, advertising, cloud computing, and other businesses
As the world's largest e-commerce company, Amazon was once a leading international e-commerce enterprise that domestic e-commerce companies competed against. In fact, in addition to e-commerce services, Amazon also involves production and manufacturing, chips, advertising, cloud computing, and other businesses. With its comprehensive logistics system, Amazon has become the most trusted e-commerce platform in Western countries in Europe and America. A few years ago, Amazon was one of the top 10 companies in the Fortune 500 in terms of both revenue and profits, with an annual revenue of over $500 billion, equivalent to the total amount of goods imported by the United States from China in a year. Its founder, Bezos, once became the world's richest person and became a hot topic of discussion.

However, the past 2022 has been a bumpy year for Amazon, with frequent negative news such as stock price declines, corporate business tightening, layoffs, and headquarters shutdowns. According to publicly available information, Amazon's stock price fell by more than 50% in 2022 alone, which can be described as a halving. We all know that the decline in stock price means that the company's business operations have encountered problems, and indirectly reflects the company's profitability. The annual financial report also confirmed external predictions, with Amazon's operating profit of $12.2 billion in 2022 and $24.9 billion in 2021, a year-on-year decrease of 51%; In terms of external investment, Amazon's annual loss in new energy vehicles alone exceeded $12.7 billion. So the question arises, why did Amazon, a trillion dollar e-commerce giant, experience a decline in profits and fall into a quagmire?

Industry analysts believe that the reasons for Amazon's current predicament can be divided into at least three aspects.
1 The decrease in purchasing power caused by the US dollar interest rate hike
As the world economy slows down, a rate hike in the US dollar has become inevitable. According to official disclosure, it is not difficult to find that the US dollar has continuously raised interest rates, resulting in a decrease in purchasing power in regions closely related to the US dollar, which has led to further shrinkage of the demand side. Amazon's main business is e-commerce, with e-commerce revenue accounting for up to 42%. According to data, in 2022, Amazon's e-commerce operating profit in North America alone lost $2.8 billion, with a cumulative global loss of $7.7 billion.

2 The public's interest in e-commerce is decreasing after the liberalization
Due to well-known reasons, the dependence of the public on e-commerce has increased in the past three years. However, since mid-2021, some Western countries have been "lying flat" one after another, and the people who have opened up naturally need to yearn for freedom, so offline "retaliatory" consumption appears very abrupt. In fact, in Western countries, people are more enthusiastic about offline shopping than in China, where many so-called e-commerce shopping festivals are held spontaneously. The increase in offline consumption naturally reduces online consumption, and Amazon, which relies on e-commerce for profit, will naturally be affected.

3 Blindly investing
In order to benchmark Tesla, Amazon invested in American new energy pickup truck and SUV manufacturer Rivian. However, Rivian, known as Tesla's biggest competitor, suffered a huge loss last year and its stock price fell. Amazon has accumulated an annual loss of up to $12.7 billion in this investment, surpassing the e-commerce operating loss. It is obvious that this loss was caused by a "human error" and was the result of irrational investment by the management.

Nowadays, the losses in 2022 are transmitted to various departments of Amazon like dominoes. According to data, Amazon is expected to lay off 18000 employees in order to streamline its operating costs. This is the largest layoff since Amazon's establishment and the largest layoff in the entire technology industry to date. In addition, Amazon's new headquarters construction has also been repeatedly reported to be suspended due to cash flow issues. With the further deterioration of the world economy, the advertising and cloud computing sectors that could have created huge profits for Amazon will also become bleak prospects, and the strategy of relying on cross subsidies to maintain the normal operation of the group will also be stretched.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
Mobile advertising space rental |
Tag: of Annual loss billion layoffs 18000 people The world
Exclusive Huang Lei, General Manager of Alibaba Taobao Education Business Unit, resigns or engages in entrepreneurship in the field of education and training
NextHow do I turn on the WeChat NFC function? The function and tutorial of WeChat NFC function!
Guess you like
-
Pinduoduo's "Trillion-Yuan Support" Plan: A Three-Year, 100 Billion Yuan Investment to Build a Multi-Win Business EcosystemDetail
2025-04-03 14:41:29 11
-
Huyu Xianxiang and AVIC Optoelectronics Institute Forge Strategic Partnership to Shape China's eVTOL Avionics LandscapeDetail
2025-04-02 18:39:02 1
-
Haier Smart Home's 8th Global R&D Innovation Awards: Illuminating Better Lives with Technology, Achieving User SatisfactionDetail
2025-04-02 15:57:33 21
-
Huawei's 2025 China Digital Power Partner Conference: Carbon-Neutral Path for China, Shared Value CreationDetail
2025-03-31 18:57:09 11
-
OPPO Think Tank: A New Paradigm for Chinese Enterprises' Globalization From Wusha Village to the Global High-End MarketDetail
2025-03-31 18:48:21 1
-
ICLR 2025: Chinese Universities and Companies Showcase AI Prowess with Numerous Accepted Papers; Stanford-HKUST Collaboration Achieves Perfect ScoreDetail
2025-03-31 14:54:45 11
-
Huawei HarmonyOS Smart Home Partner Summit: Deep Dive into Spatial Intelligence Transformation and Ecosystem Development StrategyDetail
2025-03-31 13:01:45 1
-
AI Large Models Drive Innovation in Humanoid Robots and Autonomous Driving: 2025 as a Key MilestoneDetail
2025-03-31 13:00:04 1
-
Eight Cities Pilot Credit Supervision Data Openness, Empowering Micro and Small Enterprises with Mobile Payment PlatformsDetail
2025-03-26 09:32:47 1
-
Xiaomi's "Just a Little Profit": The Deep Logic and Sustainability Behind its Low-Margin StrategyDetail
2025-03-25 15:07:32 21
- Detail
-
The Ninth Huawei ICT Competition China Challenge Finals Conclude Successfully: Kunpeng and Ascend Tracks Crown Their ChampionsDetail
2025-03-24 16:26:03 11
-
Ronshen Sugar Cube Refrigerator: The Official Product of the 2025 FIFA Club World Cup, Ushering in a New Era of Healthy Food PreservationDetail
2025-03-24 15:40:35 21
-
Zhihu Launches New Version of Zhihu Straight Answer: Deep Integration of AI and Community to Enhance Professionalism and CredibilityDetail
2025-03-24 14:04:38 1
-
China Construction Ninth Harmony (Zhongjian Jiuhe) and Huawei HarmonyOS Smart Home Deepen Strategic Partnership at AWE2025, Building a Green and Intelligent Future HomeDetail
2025-03-23 15:21:15 41
-
ZuoYeBang Books Leads the New Trend in Intelligent Education Publishing at Changsha Book FairDetail
2025-03-21 15:15:33 1
-
Tianyancha: Shielding Consumer Safety and Reshaping Business Trust with DataDetail
2025-03-21 08:47:58 1
-
Hisense at AWE2025: AI Empowerment, Leading the Transformation of Future Smart LivingDetail
2025-03-20 18:24:11 11
-
Haier TV Makes a Stunning Debut at AWE 2024: Zhiyuan AI Large Model and PureScene Care Screen Usher in a New Era of Smart HomesDetail
2025-03-20 15:17:20 1
-
China Power's Xin Yuan Zhi Chu (New Source Smart Storage): Open Energy Intelligence Computing Center Leads Intelligent Transformation of the Energy IndustryDetail
2025-03-20 15:15:39 1