American eCommerce giant, Amazon Inc has reportedly decided to temporarily stop hiring in certain businesses and departments as part of dealing with slowing sales and recession fears. The multinational technology company has been facing several challenges from the economic and financial perspective as high inflation and fear of a global economic recession had a serious impact on the sales of products.
Chief Financial Officer of Amazon Inc, Brian Olsavsky said on Friday that the company witnessed some moderation in sales during the third quarter of the current financial. He also said that headwinds in the area of foreign currency value and high volatility in the global markets have also impacted the performance of the company during the third quarter.
Amazon Inc evaluates these factors to have a continuing impact on the company and hence is taking some corrective measures such as pausing hiring in various businesses and winding down certain products and services. The company will also be reallocating resources from these wound-up sectors to segments where it would be most efficiently put to work. Amazon Inc had earlier also taken such measures whenever there have been instances of financial crisis in and out of the organization.
The parent company of Facebook, Meta had a few hours ago announced that it will slow down hiring dramatically to cut costs. Various information technology companies have been taking measures to cut down costs and reduce expenses. The majority of those business entities had posted a below-par performance during the third quarter of the current financial year.
Statistics suggest that Amazon Inc posted net sales of 127.1 billion dollars during the third quarter. Even though the net sales were below what analysts had expected, the numbers posted were almost 19 percent higher on a yearly basis. Drastic changes in the value of foreign currencies also had a small but significant impact on the net sales and revenue of the multinational company.
Net income also decreased to 2.9 billion dollars during the third quarter as customers in European countries reduced spending on online retail stores as the economic condition in those countries is turning worse day by day.
The top management of the e-commerce giant has been taking some drastic steps to control costs and reduce expenses during this time of high inflation and reduced spending by customers. Media reports state that the company has introduced strict control on opening new stores, warehouses, and appointment of personnel to newly created positions.
Amazon Inc founded as Cadabra, Inc. in 1994 by Jeff Bezos is one of the largest multinational companies in the world which uses information technology for e-commerce activities. Other than e-commerce, the company is also into the business of advertising, cloud computing, and online streaming to name a few.