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☆ The Rings of Pain: Amazon is looking where to cut costs. Here's how the company will decide who is put to the sword and who is spared.
▼ + stars: | 2022-10-28 | by ( Katherine Long | ) www.businessinsider.com time to read: +3 min

Amazon is looking for areas to cut costs, CFO Brian Olsavsky said. Amazon is "looking for areas where we can save money," he said on a conference call Thursday. Which divisions get the ax will be based in part on their ability -- or lack thereof -- to contribute to Amazon's growth, Olsavsky told reporters. Amazon Web Services posted 27% revenue growth last quarter, its slowest growth rate since Amazon began breaking out the division in its financial statements. Amazon's advertising division also saw revenue growth moderate compared to a year ago, to 30% – but it outperformed advertising behemoths Google and Facebook.

☆ Amazon just flashed the holiday warning retailers were hoping to avoid
▼ + stars: | 2022-10-28 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

Amazon sees a 2% to 8% growth in sales for the fourth quarter of the year, way below the previous two years. Amazon sales are slowing globally — particularly in Europe, amid the Ukraine war. In its third-quarter earnings report, Amazon — the world's largest online retailer — said it expects sales for the holiday quarter to come in at $140 billion to $148 billion. Sales growth have already started slowing in the third quarter and the trend is likely to persist through the fourth quarter, which spans the holiday season, Olsavsky said. Amazon's share price fell 12.7% to $96.84 in after-hours trade, erasing about $140 billion of the company's market capitalization, per Reuters.

☆ Amazon slashes yet another division in attempt to cut costs, one day after share price bloodbath
▼ + stars: | 2022-10-28 | by ( Katherine Long | Tom Dotan | ) www.businessinsider.com time to read: +2 min

Amazon fired half of its Amp live radio division on Friday, notifying roughly 150 people they would need to take severance or find new jobs internally. Amazon is looking for ways to tighten its belt amid growing shipping costs and slackening consumer spending. The company reported weaker-than-expected sales and forecasts Thursday, causing its share price to tumble nearly 12%. Amazon fired roughly 150 people from its Amp live radio division Friday, one day after weaker-than-expected earnings caused its share price to plunge nearly 12%. The app allows users to broadcast their own live radio shows and has been courting content creators.

☆ In Europe, consumer businesses like Amazon face holiday reckoning
▼ + stars: | 2022-10-28 | by ( Jeffrey Dastin | ) www.reuters.com time to read: +3 min

The extraordinary plummet put Europe in the spotlight for a company typically hurting from expansion in more emerging markets. Brian Olsavsky, Amazon's chief financial officer, told reporters: "Fuel cost and the impacts of the Ukraine war are hitting the economies in Europe even harder than the U.S., and that's showing up in consumer spend." "Consumer sentiment in Europe is at an all time low," Unilever PLC (ULVR.L) Chief Financial Officer Graeme Pitkethly told reporters, warning likewise of rising inflation and depleted household savings. Mastercard Inc's (MA.N) chief financial officer said Thursday that the credit card provider so far noticed little change in European consumer spending volumes. Still, a wide range of multinational companies have warned of weakness in European markets.

☆ Big Tech falters on dreary earnings and forecasts for Q4— Meta has worst week ever, Amazon tumbles 13%
▼ + stars: | 2022-10-28 | by ( Jordan Novet | ) www.cnbc.com time to read: +4 min

Other than Apple , it was a brutal earnings week for Big Tech. Alphabet , Amazon , Meta and Microsoft combined lost over $350 billion in market cap after offering concerning commentary for the third quarter and the remainder of the year. Between slowing revenue growth — or declines in Meta's case — and efforts to control costs, the tech giants have found themselves in an unfamiliar position after unbridled growth in the past decade. In Amazon's ad business, revenue growth accelerated to 30% from 21%, topping analysts' estimates. Analyst Aaron Kessler at Raymond James lowered his price target on Amazon stock to $130 from $164 after the results.

☆ ECB policymakers stick with hike plans even as recession looms
▼ + stars: | 2022-10-28 | by ( Balazs Koranyi | ) www.reuters.com time to read: +5 min

[1/2] Signage is seen outside the European Central Bank (ECB) building, in Frankfurt, Germany, July 21, 2022. But policymakers on Friday appeared to be on message that rates will keep going up. Investors now see ECB rates peaking at around 2.75%, above levels near 2.5% seen on Thursday after the ECB's rate hike and language tweaks. RECESSIONThe policymakers' reinforcement of the rate hike message comes as a recession now looks almost certain, and will likely prompt a barrage of further criticism from European leaders. But ECB chief Christine Lagarde pushed back on the criticism on Thursday, arguing that breaking inflation was the ECB's chief mission and governments could help by providing targeted support for the most vulnerable.

☆ How an $18-an-hour Amazon warehouse job cured one former tech exec's burnout
▼ + stars: | 2022-10-28 | by ( Avery Hartmans | ) www.businessinsider.com time to read: +5 min

It's been a wild week in tech, made even more wild by Elon Musk's Twitter deal closing last night. We've got a ton of news this morning, including an account from a longtime tech exec who took a job at an Amazon fulfillment center to help cure his burnout. How an $18-an-hour Amazon warehouse job cured one tech exec's burnout. He decided to quit his CEO job and, eventually, take on a seasonal role at an Amazon fulfillment center. How Elon Musk's "autocratic leadership" will change Twitter.

☆ Amazon's cloud business just reported its slowest growth ever, and executives hinted it could get even worse
▼ + stars: | 2022-10-27 | by ( Eugene Kim | ) www.businessinsider.com time to read: +3 min

Amazon's cloud business grew 27% in Q3, the slowest pace since disclosing that number in 2014. CFO Brian Olsavsky said the growth rate was even lower in the back-end of the third quarter. On Thursday, Amazon's cloud business reported a 27% revenue growth rate for the third quarter, the slowest expansion since the company started disclosing the number in 2014. During Thursday's analyst call, Olsavsky said AWS's growth rate decelerated as the third quarter progressed, falling down to the "mid-20% growth rate" in the latter part of the period. To help those customers, AWS is offering lower-priced options and a more cost-efficient chip processor service, he said.

Oct 27 (Reuters) - Amazon.com Inc (AMZN.O) on Thursday forecast a slowdown in sales growth for the holiday season, disappointing Wall Street and warning that inflation-wary consumers and businesses had less money to spend. In a call with reporters, Amazon Chief Financial Officer Brian Olsavsky said the company was bracing for slower economic growth. Amazon forecast net sales of between $140 billion and $148 billion, or growth as little as 2% from a year earlier. The Amazon logo is seen at the company's logistics centre in Boves, France, October 6, 2021 REUTERS/Pascal Rossignol/File PhotoPrior holiday quarter sales growth was 9% in 2021 and 38% in 2020. Amazon's cloud sales growth has ticked down consistently in the past year.

☆ Amazon predicts profit slump during holidays, crushing shares
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +3 min

Amazon's net sales were $127.1 billion in the third quarter ended Sept. 30, little lower than analysts' expectations of $127.46 billion, according to IBES data from Refinitiv. And for the holiday quarter, the world's biggest online retailer forecast net sales of between $140 billion and $148 billion. It increased third-quarter cloud sales 28% to $20.5 billion, while analysts had expected more than $21.1 billion. In the retail sector, U.S. online sales are expected to rise at their slowest pace in years this holiday season. Amazon's net income decreased to $2.9 billion in the third quarter, ahead of analysts' average estimate of a $2.2 billion profit, according to IBES data from Refinitiv.

☆ We're disappointed by Amazon's terrible results, stock plunge; but sticking with it for now
▼ + stars: | 2022-10-27 | by ( Jeff Marks | ) www.cnbc.com time to read: +9 min

Considering all the cross currents and a terrible initial stock reaction, we're going to sit tight on the stock for now. Segment Q3 sales Online Stores: $53.49 billion, up 13% year over year excluding-FX, missed the $54.27 billion expected. Physical Stores, mostly Whole Foods: $4.69 billion, up 10% from last year ex-FX, in line with the $4.71 billion expected. AWS: $20.54 billion, up 28% year over year excluding-FX, and a miss versus the $21.2 billion expected. Advertising Services: $9.55 billion, up 30% year over year excluding-FX, and a slight beat versus the $9.481 billion expected.

☆ Leaked Amazon slides instruct employees to 'double down on frugality' in all-hands meeting
▼ + stars: | 2022-10-12 | by ( Ashley Stewart | Eugene Kim | ) www.businessinsider.com time to read: +4 min

Amazon urged frugality in an all-hands meeting this week, according to excerpts reviewed by Insider. The comments signify the tone shift at Amazon, as it tightens its belt in the face of a looming recession. Amazon's leadership team urged employees to "double down on frugality" in an internal all-hands meeting this week, according to slides and excerpts viewed by Insider. The slides instructed employees to "accomplish more with less," meaning to adjust hiring, reduce costs, and inventory levels. At the meeting, Amazon CEO Andy Jassy conveyed a similar message when asked about the economic downturn and its effect on Amazon's future investments.

☆ Amazon officially confirms it will hold a 2nd 'Prime Day' sales event in October
▼ + stars: | 2022-09-26 | by ( Isobel Asher Hamilton | ) www.businessinsider.com time to read: +2 min

Amazon announced it's holding a new sales event called the "Prime Early Access Sale" in October. Amazon has historically had a big sales event for its prime subscribers in July. Insider previously reported Amazon was planning the second October event. The October timing of the Early Access Sale means Amazon will be throwing the sales event right before it heads into its busy holiday season, known internally as "peak." Amazon did not immediately respond when contacted by Insider about why it had decided to introduce another sales day.

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