Amidst increasing concern regarding global economic slowdown and recession in major economies, Jeff Bezos, founder of international e-commerce giant, Amazon, said on Tuesday that rougher times are ahead for the Global economy.
Jeff Bezos opened his mind about economic conditions in a tweet that quoted the words of Goldman Sachs Chief Executive David Solomon. David Solomon had earlier said in an interview with CNBC that it was high time leaders of the corporate world understand the seriousness of the economic crisis and act accordingly. David Solomon also requested the heads of multinational corporations to plan things accordingly for the incoming economic slowdown.
The market has had mixed opinions about the longevity and intensity of economic recession in major economies around the world. While some have been arguing that the economic slowdown would be in effect for a very short time, others have been of the view that the intensity would be very high. Keeping away the differences in opinions, everyone is sure that a recession is around the corner by the end of this financial year or by the beginning of the next financial year.
Even though Amazon witnessed a boom in operations and revenue during Corona Pandemic and the resultant lockdown, the operations, and orders went down after the buying frenzy. Amazon also decided to make changes in the priority of employing resources and slowed down the hiring of new employees into the workforce. Amazon had earlier recruited a large number of workers for their fulfillment centers to keep up with the high demand.
Giants of the Information Technology industry, Google, Meta, and Apple has been repeatedly saying that the global economic slowdown and crisis with the global supply chain have severely impacted their revenue and social growth. The impact of the economic slowdown on the advertisement market has strained the revenue streams of various IT companies which make money through advertisement.
CEO of Google, Sundar Pichai, and head of Meta, Mark Zuckerberg had earlier stated that their businesses are trying to come up with new ways to combat the economic slowdown and its impact on revenue growth. The financial results for the past few quarters have been below the expected numbers for all the major IT companies. Some companies even threatened employees that there would be massive layoffs if there is no improvement in the growth prospects of the company by the next quarter.
Apart from the IT companies, financial institutions such as JP Morgan Chase and Goldman Sachs have also been voicing their concerns regarding the condition of the global and domestic economy .
