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Amazon trailers are parked at an Amazon Air gateway at Miami International Airport in Miami, Florida, on Sept. 26, 2023. Amazon is warning investors that the climate crisis may have a material effect on its business. Amazon first included climate change among its risk factors in its 2021 annual report, but this year, it added expanded disclosures. In addition to the humanitarian crises, economists have signaled extreme weather caused by climate change has led to supply chain disruptions and worker shortages. Lawmakers have probed how Amazon manages its frontline workforce in extreme weather events, after a deadly warehouse collapse in 2021.
Organizations: Miami International Airport, United Nations, Amazon, Lawmakers Locations: Miami, Miami , Florida, Seattle
Tech's longtime highfliers are growing up by getting smaller
  + stars: | 2024-02-02 | by ( Ari Levy | ) www.cnbc.com   time to read: +7 min
They're still out hunting for the best technical talent, particularly in areas like artificial intelligence, but headcount growth is measured. Last year, tech companies were responding to dramatically changing market conditions — soaring inflation, rising interest rates, rotation out of risk — after an extended bull market. Meta slashed over 20,000 jobs in 2023, Amazon laid off more than 27,000 people, And Alphabet cut over 12,000 positions. Other than Nvidia , which had a banner 2023 due to soaring demand for its AI chips, none of the other mega-cap tech companies have been growing at their historic averages. By late this year, analysts are projecting growth at Meta will be back down to the low teens at best.
Persons: Tayfun, There's, Daniel Flax, Neuberger Berman, CNBC's, Morgan Stanley, Brian Nowak, Brian Olsavsky, They're, Mark Zuckerberg, Zuckerberg, Olsavsky, Phil Spencer, Justin Sullivan, Okta, Zuora, Evan Sohn, Recruiter.com, " Sohn, Susan Li, Ben Barringer, Cheviot, Barringer, , Annie Palmer Organizations: Anadolu Agency, Getty Images Technology, Amazon, Meta, hasn't, Microsoft, Activision Blizzard, SAN FRANCISCO, Activision, FTC, Getty, Federal, Labor Department's Bureau of Labor Statistics, Tech, Nvidia, Finance, CNBC Locations: Menlo Park , California, Silicon Valley, CALIFORNIA, San Francisco , California
Activist investor Elliott Management has a "sizable" investment in e-commerce firm Etsy , which announced on Thursday that Elliott partner Marc Steinberg would join the company's board. The activist investor has built a roughly 13% position in the stock, a person familiar with the matter told CNBC. The position would make it Etsy's largest investor. Still, the e-commerce company's stock is down about 10% year-to-date. It competes with e-commerce companies including Amazon, which has its own handcrafted products platform.
Persons: Elliott, Marc Steinberg, CNBC's David Faber, Josh, Steinberg, Etsy, Josh Silverman, Silverman Organizations: Nasdaq, Elliott Management, CNBC, Vanguard, BlackRock, Match Group, Philips, Amazon Locations: New York City, Salesforce, Brazil
An illustrative image of the Amazon shopping app seen on a mobile phone screen in front of an old, left, and a new, right, Amazon shopping app icon displayed on a screen. Amazon on Thursday announced a new artificial intelligence assistant for shopping called Rufus. Amazon has launched numerous generative AI tools and services in recent months, capitalizing on the hype sparked by OpenAI's ChatGPT. The company has tested AI tools to answer shoppers' questions and summarize reviews, as well as an AI feature to help third-party sellers write listings. Outside of its retail business, Amazon has introduced Q, a chatbot for businesses, and Bedrock, a generative AI service for cloud customers.
Persons: Rufus, Amazon, Andy Jassy, OpenAI's ChatGPT Organizations: Amazon Locations: U.S
Amazon is slated to report fourth-quarter earnings Thursday after the closing bell. In January, Amazon said it would let go of employees across units including Prime Video, MGM Studios, Twitch, Audible and Buy with Prime. In November, Amazon launched "Q," an AI chatbot for businesses, as well as new Trainium chips for AI applications. Discovery 's Max by introducing ads to Prime Video programming. Amazon will discuss the report on a conference call with analysts at 5:30 p.m.
Persons: Andy Jassy, Amazon, Evercore, Jassy's, Brian Olsavsky, Max Organizations: Web, Amazon, MGM Studios, Revenue, National Retail Federation, Netflix, Disney, Hulu, Warner Bros, Citi Locations: Ukraine
At Meta, in CEO Mark Zuckerberg's words, 2023 was the "year of efficiency," and the stock jumped almost 200% alongside 20,000 job cuts. AI demand is so great that some tech companies are cutting headcount in parts of the business to invest more heavily in developing AI products. Phil Spencer, CEO of Microsoft Gaming, appears at the Political Opening of the Gamescom conference in Cologne, Germany, on Aug. 23, 2023. Within tech, a wide variety of companies, big and small and spanning the consumer and enterprise markets, are eliminating jobs. But, he added, there's an "enormous base" of small and mid-sized tech companies across the U.S., and that in some cases contractors, freelancers and overseas workers are being hit particularly hard.
Persons: Peter Kramer, They've, Mark Zuckerberg's, Zeile, Phil Spencer, Franziska Krug, Sundar Pichai, Bob Carrigan, Nigel Vaz, Publicis Sapient, Salesforce, Meta's, " Vaz, Levi Strauss, Bob Bakish, Tim Herbert, Herbert, there's, Vaz, Michael Bloom, Annie Palmer, Jennifer Elias Organizations: Nasdaq, CNBC, Apple, Meta, Microsoft, Investors, Activision Blizzard, SAP, Microsoft Gaming, Facebook, Citigroup, Paramount, Commerce Department, Gross Locations: Cologne, Germany, U.S
Amazon 's Ring will no longer allow police to request users' doorbell video footage in its neighborhood watch app. Ring in 2021 made police requests for user footage public in its Neighbors app. Previously, law enforcement could message users privately to request clips from their smart doorbell cameras. Jamie Siminoff, Ring's former CEO, couched the features as a public safety tool that would help communities. "My goal would be to have every law enforcement agency on the police portal," Siminoff told CBS in 2019.
Persons: Ring, Erik Kuhn, Sen, Ed Markey, Jamie Siminoff, Siminoff, Elizabeth Hamren, Kuhn Organizations: Amazon, Police, Privacy, CBS, Microsoft Locations: Seattle
Amazon names logistics head as new AWS CFO
  + stars: | 2024-01-18 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com   time to read: +1 min
Amazon said Thursday John Felton, the company's top logistics executive, will take over as chief financial officer of its AWS cloud computing unit. In a blog post, Doug Herrington, Amazon's worldwide retail chief, said Felton would take on a new role as senior vice president and Amazon Web Services CFO. Udit Madan, Amazon's vice president of transportation, will replace Felton. Felton has been with Amazon for nearly two decades, most recently serving as the head of its worldwide operations division. Felton will replace AWS' current CFO Richard Puccio.
Persons: John Felton, Doug Herrington, Felton, Udit Madan, Andy Jassy's, I'm, Richard Puccio, Puccio, shakeup Organizations: Amazon, Amazon Web, AWS, Street, CNBC Locations: He's
Shares of iRobot plunged more than 33% in extended trading on Thursday after a report said the EU's antitrust watchdog intends to block Amazon 's planned acquisition of the Roomba vacuum maker. A representative from the European Commission didn't immediately respond to a request for comment. The European Commission, the European Union's top antitrust enforcer, opened an in-depth probe into the purchase last July. The group warned the planned acquisition raises competition concerns, saying it found Amazon may hinder iRobot's rivals from competing on its online marketplace. Earlier this month, Politico reported Amazon doesn't plan to offer concessions to resolve the group's concerns about the acquisition.
Persons: vacuums, iRobot Organizations: Street Journal, European, Amazon, European Commission, Politico, U.S . Federal Trade Commission, Markets Authority Locations: San Rafael , California
Amazon is laying off about 30 employees in its Buy with Prime unit, CNBC has learned, as it continues to look for ways to trim costs. The cuts affect fewer than 5% of staff in the Buy with Prime division, Amazon said. Buy with Prime is a service that lets online stores offer the same two-day shipping benefits available to Prime subscribers. Amazon said it's assisting Buy with Prime employees who were laid off in finding new roles elsewhere within the company. WATCH: Amazon lays off hundreds of roles across Twitch, Prime Video and MGM Studios
Persons: we've, Santos, Peter Larsen, Amazon Organizations: CNBC, Amazon, Prime, MGM, Google, Xerox, Unity, Employees, MGM Studios
Amazon trailers are parked at an Amazon Air gateway at Miami International Airport in Miami, Florida, on Sept. 26, 2023. Amazon is rolling out an artificial intelligence tool that can answer shoppers' questions about a product, a spokesperson confirmed, as the company continues to experiment with generative AI. It then returns an answer within a few seconds, primarily by summarizing information collected from product reviews and the listing itself. The feature could keep shoppers from scrolling through pages of reviews or reading through a listing to find information about a product. The tool is designed not to veer off subject, and will return an error message if it can't answer questions such as, "Who is Jeff Bezos?"
Persons: We're, Maria Boschetti, OpenAI's, Yoda, Jeff Bezos Organizations: Miami International Airport, Amazon, Star Wars, Marketplace Locations: Miami, Miami , Florida
Amazon's Audible unit lays off about 5% of staff
  + stars: | 2024-01-11 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com   time to read: +3 min
The Audible application is displayed on a smartphone in an arranged photograph taken in Arlington, Virginia, on May 21, 2020. Amazon 's Audible division is cutting approximately 5% of its staff in an effort to position the unit "for continued success," the executive overseeing the division told employees Thursday. The announced cuts follow the layoffs on Wednesday of hundreds of employees in Amazon's Prime Video, MGM Studios and Twitch livestreaming units. The unit has remained largely independent since the deal but is not immune to broader cuts underway at its parent. We are well positioned to continue our momentum and sustain the global growth that will keep us the leader in audio storytelling.
Persons: Bob Carrigan, we've, It's Organizations: Amazon's, MGM Studios, CNBC, Amazon, Global Locations: Arlington , Virginia
Amazon is pitching its cashierless checkout technology to hospitals and other health-care facilities. Hospital visitors will also be able to shop at JWO-enabled stores using credit cards and debit cards, as well as mobile wallets. Amazon's JWO technology allows shoppers to enter a store by scanning an app and exit without needing to stand in a checkout line. Cameras and sensors track what items shoppers select and charge them when they leave. It also sells the technology to third-party retailers in airports, college campuses, stadiums and theme parks, among other venues.
Persons: Joseph's, Amazon Organizations: Amazon, Candler Hospital, CNBC PRO Locations: Ealing, London, England, JWO, Savannah , Georgia
Last March, Twitch let go of roughly 400 staffers, and it cut some employees in its customer experience division last October. Amazon has undergone the largest layoffs in its history, cutting 27,000 employees since 2022. The cuts have been ongoing, with Amazon announcing layoffs in its Prime Video and MGM Studios units on Wednesday. So while the Twitch business remains strong, for some time now the organization has been sized based upon where we optimistically expect our business to be in 3 or more years, not where we're at today. If your role is affected by this decision and you live in the US, Canada, Brazil, Mexico, or Singapore.
Persons: Twitch, Emmett Shear, Clancy, Doug Scott, Laura Lee, we've, you've, Lauren Nunes, Dan Organizations: Amazon, MGM Studios, Clancy, Team Locations: Canada, Brazil, Mexico, Singapore, Twitch
Here's the full memo from Hopkins:Team,We've taken significant steps towards our long-term vision of making Prime Video the first-choice entertainment destination for customers worldwide, and I'm proud of everything we've accomplished as a team to date. And, through our acquisition of MGM, we've increased our investments in theatrical films and driven growth in MGM+ and our licensing and third-party production businesses. As a result of these decisions, we will be eliminating several hundred roles across the Prime Video and Amazon MGM Studios organization. It is hard to say goodbye to talented Amazonians who've made meaningful contributions on behalf of our customers, team and business. Prime Video is one of the most popular benefits for Prime members, and one of most widely used entertainment destinations in the world.
Persons: We've, we've, Amazonians who've, Mike Organizations: Amazon, Hopkins, MGM, Prime, Amazon MGM Studios Locations: Americas
Shares of iRobot closed down 19% on Wednesday, after a report said Amazon will not offer concessions to Europe's antitrust watchdog in a bid to clear its planned $1.7 billion acquisition of the Roomba maker. Representatives from iRobot and the European Commission did not immediately respond to CNBC's request for comment. Shares of Amazon closed up 1.5% on Wednesday. The European Commission opened an in-depth probe into the purchase last July and is expected to rule on the deal by Feb. 14. Amazon announced its intention to acquire iRobot in August 2022 for $61 per share in an all-cash deal.
Organizations: Politico, European Commission, Amazon, iRobot, U.S . Federal Trade Commission, Markets Authority, CNBC PRO Locations: iRobot
Senator Bernie Sanders, an Independent from Vermont, left, speaks next to Christian Smalls, founder of the Amazon Labor Union (ALU), during an ALU rally in the Staten Island borough of New York, U.S., on Sunday, April 24, 2022. Amazon and consultants for the company violated federal labor law by interrogating and threatening employees regarding their union activities, and racially disparaging organizers who were seeking to unionize a Staten Island warehouse, a National Labor Relations Board judge ruled. In April 2022, employees voted to join the Amazon Labor Union, a grassroots group of current and former workers, becoming the first unionized Amazon facility in the U.S. The judge in New York heard testimony from Amazon employees, managers and labor consultants in virtual hearings that went on for almost a year. Amazon continues to challenge the JFK8 election results, as well as the NLRB and the union's conduct during the drive.
Persons: Bernie Sanders, Christian Smalls, Judge Lauren Esposito, Esposito, Daequan Smith, Bradley Moss, Moss, Smith, Natalie Monarrez, Monarrez, Monarrez . Moss, Chris Smalls, David Zapolsky, Amazon's, Smalls Organizations: Amazon Labor Union, National Labor Relations, NLRB, Amazon, Huffington, Department of Labor, BHM1, Retail, Wholesale, Department Store Union Locations: Vermont, Staten Island, New York, U.S, JFK8, unionizing, Bessemer , Alabama, Monarrez
Federal Trade Commission Chair Lina Khan speaks during The New York Times annual DealBook Summit in New York City on Nov. 29, 2023. Under her leadership, Khan said the FTC has brought 11 cases against mergers, and in five instances, the companies abandoned their plans after the agency filed suit. The lawsuit was long anticipated, as Khan rose to prominence for her 2017 Yale Law Journal article, "Amazon's Antitrust Paradox." Amazon has disputed both of the FTC's lawsuits, calling them "wrong on the facts and the law." Asked why she hasn't subscribed to Prime, Khan replied, "I just haven't."
Persons: Lina Khan, Khan, would've, hasn't Organizations: Federal Trade, New York Times, The New York Times, Summit, FTC, Facebook, Microsoft, Activision, Amazon, Yale, Amazon's, CNBC PRO Locations: New York City
Amazon said Tuesday it rang up "record-breaking" sales in the run-up to Cyber Monday as consumers, still pinched by inflation, sought discounts. The company said the period from Nov. 17 to Cyber Monday marked its "biggest ever" holiday shopping event compared to the same 11-day stretch last year. Amazon, which did not disclose actual sales figures, added that shoppers worldwide bought more than 1 billion items during the period. Retailers and analysts were cautious heading into this year's holiday shopping season. While consumers have remained resilient, grocery prices remain high, and the resumption of student loan payments has eaten into some shoppers' holiday budgets.
Persons: Doug Herrington Organizations: Amazon, Deal, Worldwide Amazon Stores, U.S, Adobe Analytics, Adobe's Locations: Robbinsville , New Jersey, U.S
Amazon is expanding its palm-scanning technology beyond grocery stores and is rolling out a version that's designed for the business world. Companies already signed up for the biometric technology include IHG Hotels and Resorts, turnstile manufacturer Boon Edam, and Kone, an escalator and elevator provider. Amazon didn't disclose pricing for the service, which is available in preview in the U.S. starting Monday. Advocacy groups have criticized the service over privacy and security concerns, arguing it leads to increased surveillance. Earlier this month, Amazon debuted Astro for Business, a version of its household robot that it's framing as a roving security guard for businesses.
Persons: Edam, Kone, Dilip Kumar, It's Organizations: Companies, Resorts, Amazon, Foods, Sports, Business Locations: U.S
Shoppers turned out in full force on Thanksgiving and over the Black Friday weekend, largely shunning physical stores for the comfort of clicking "buy online" from their couches. Black Friday online spending reached a record $9.8 billion in the U.S., up 7.5% from a year earlier, according to Adobe Analytics. Online sales on Cyber Weekend, the days between Black Friday and Cyber Monday, surged 7.7% to $10.3 billion. Cyber Monday sales are expected to reach up to $12.4 billion, making it the biggest U.S. online shopping day of the year, according to Adobe. A plastic rice washing bowl, listed as one of the top-selling Cyber Week items, is discounted 68% to $1.89 with free shipping.
Persons: Shoppers, Wayfair, Afterpay, Klarna, Sebastian Siemiatkowski, Siemiatkowski Organizations: Adobe Analytics, Black, Adobe, National Retail Federation, CNBC PRO Locations: U.S
Shares of iRobot plunged as much as 19% on Monday after the EU's antitrust watchdog issued a warning that Amazon 's planned $1.7 billion acquisition of the Roomba maker raises competition concerns. "iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products," the spokesperson said. iRobot shares were briefly halted earlier Monday afternoon following the announcement. Amazon shares were up about 1.4%. The commission's announcement comes after iRobot shares rocketed 39% on Friday after Reuters reported the deal is set to "win unconditional EU antitrust approval," citing three sources familiar with the matter.
Persons: vacuums, iRobot Organizations: European Commission, Amazon, CNBC, U.S . Federal Trade Commission, Markets Authority, iRobot, Reuters, EU Locations: San Rafael , California
Shares of iRobot , the maker of Roomba vacuums, closed up about 39% Friday after a report said the European Union is set to approve Amazon's $1.7 billion acquisition of the company. Reuters said Thursday morning the deal is set to "win unconditional EU antitrust approval," citing three sources familiar with the matter. The European Commission is expected to rule on the deal by Feb. 14. Representatives from the European Commission didn't immediately respond to CNBC's request for comment. The acquisition marks Amazon's fourth-largest deal, behind its $13.7 billion purchase of grocery chain Whole Foods in 2017, its $8.45 billion purchase of film studio MGM in 2021 and its $3.9 billion acquisition of boutique primary-care provider One Medical, announced last July.
Persons: Roomba, , Annie Palmer Organizations: European Union, Reuters, European, European Commission, U.S . Federal Trade Commission, Markets Authority, Amazon, iRobot, MGM, CNBC, YouTube, CNBC PRO
Jeff Bezos is expected to be "aggressive" in selling more shares of Amazon on Tuesday, sources told CNBC's David Faber. Bezos may sell as many as 8 to 10 million shares, which would amount to more than $1 billion worth of stock, the sources told Faber. Shares of Amazon are down about 2.6%. It comes after Bezos last week unloaded about $240 million worth of Amazon shares, according to financial filings. WATCH: Here's why Jeff Bezos is leaving Seattle for Miami
Persons: Jeff Bezos, CNBC's David Faber, Bezos, Faber, Bezos didn't, Bezos —, Bloomberg —, Lauren Sanchez, Sanchez Organizations: Amazon, Bloomberg, Fund, Seattle, Miami Locations: Maui, Seattle, Miami
The Amazon Spheres, part of the Amazon headquarters campus, right, in the South Lake Union neighborhood of Seattle, Washington, U.S., on Sunday, Oct. 24, 2021. Three Amazon staffers sued their employer on Monday alleging gender discrimination and accusing the company of retaliation after they complained of "chronic pay inequity issues." He added that Amazon doesn't tolerate discrimination in the workplace, and it investigates all reported incidents of such behavior. The complaint was filed by Outten & Golden, the same New York law firm that represented a Google executive in her successful gender bias lawsuit, as well as Uber software engineers who sued the company for gender and racial discrimination. Amazon has faced allegations of gender and racial discrimination from tech and corporate workers in recent years.
Persons: Caroline Wilmuth, Katherine Schomer, Erin Combs, Wilmuth, Schomer, Combs, Brad Glasser, Loretta Lynch Organizations: South Lake Union, Amazon, Human Resources Department, Western, of Washington, Outten Locations: South Lake, Seattle , Washington , U.S, U.S, York
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