In his annual letter to shareholders, Amazon CEO Andy Jassy reflects on the company’s challenging past while expressing confidence in recent cost-cutting measures to fuel growth. Jassy acknowledges difficult decisions such as laying off 27,000 employees but maintains optimism that these actions will ultimately benefit the company. The letter is available on Amazon’s official website.
Amazon CEO Andy Jassy reports conducting a comprehensive analysis of the company’s various businesses to evaluate their long-term revenue, operating income, free cash flow, and return on invested capital potential. As part of cost-saving measures, the e-commerce giant has recently discontinued certain initiatives, including a telehealth service and experimental projects, as well as halted expansion plans for Fresh supermarkets and warehouse expansion.
Despite acknowledging the difficulty of laying off 27,000 employees in multiple rounds, Jassy emphasizes the benefits of streamlining overall costs for the business, and maintaining a cost-conscious culture to prioritize growth.In addition, Jassy reaffirms Amazon’s commitment to hiring and retaining talented employees, with a compensation structure that prioritizes stock options over cash.
This approach may come as a disappointment to the 27,000 employees who were recently laid off. Jassy also emphasizes the importance of in-person collaboration and innovation, stating that Amazon has asked current employees to return to the office starting next month and work in-person at least three days a week.