Reasons for Retrenching the Thousands

By Wong Kon How


Why Amazon and the rest are retrenching thousands of employees? Amazon id planning to lay off around 10,000 employees. This is what Jeff Bezos thinks:


· “Take some risk off the table,” he said. “Just a little bit of risk reduction could make the difference.”


· Consumers and businesses they should consider postponing large purchases in the coming months as the global economy contends with a downturn and faces a possible a prolonged recession.


· This could mean lower sales for Amazon, the e-commerce giant.


· Amazon expects sales for the final three months of the year to be significantly below Wall Street’s expectations. The weaker forecast came as rising inflation and looming recession fears weigh on consumer purchasing decisions as Americans focus more on travel and dining out and less on buying discretionary goods.


The company’s stock has fallen more than 40% as surging prices and changing customer behavior weigh on Amazon and the broader tech sector.


The real danger will be with the continuous rise in interest rates and yet the dollar starts weakening, just like the pound. Not happening now, I am keeping watch on this closely. However, it is not all bad news, we can invest differently…


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I have included the links from the source, enjoy the read:

https://edition.cnn.com/2022/11/14/economy/jeff-bezos-economy/index.html

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