Amazon performed well in the first quarter of 2023, with revenue equal to $127.4 billionthe. This figure represents a 9% growth compared to the same period of the previous year and is the result of the increase of net sales and progress in different business areass. A result that comes after the cuts of thousands of jobs.
Amazon in the first quarter of 2023 returns to growth
In his note, Amazon CEO Andy Jassy points out, “Our team is doing an amazing job of serving customers, especially in an uncertain economic environment.”
The Stores division has optimized delivery times to customers, so much so that “we expect to achieve our fastest Prime delivery speeds ever in 2023”. Jassy pointed to the success of Amazon’s advertising business, which is climbed 23% to $9.5 billion. But Amazon Web Services (AWS) also reports revenue growth of 16%.
However, despite improvements in AWS and other divisions, like other big technology companies, Amazon stands managing the consequences of massive staffing during the pandemic. The company communicated several layoffs, eliminating 18,000 jobs at the start of the year and another 9,000 jobs lost in the most recent cut.
These reductions reflect similar moves made by Meta e Alphabet, who reported higher-than-expected revenue last quarter as they look to make businesses more efficient.
But the cuts aren’t just staff cuts. Amazon disclosed just a day before releasing first-quarter financials that was closing the Hal brandor, which includes fitness devices and other products like the still fairly new Halo Rise.
Better sales, but also cost reductions obtained with rather important cuts.