Amazon profits rise to $3.2 billion after two mass layoffstext_fields
Washington: Amazon in the first quarter of 2023 has earned a profit of $3.2 billion. This has exceeded the analysts' estimates and the report comes amid mass layoffs in the MNC.
The American firm's revenue has increased by 9% during this quarter from last year. In the second quarter, Amazon is expecting net sales to grow between 5% and 10% from the same period in 2022. This will be between $127 billion and $133 billion, reported CNN.
Senior analyst at Investing.com told the outlet that the results indicate that the ongoing cost-cutting measures are having a positive impact on Amazon's business prospects. "Amazon's strong guidance for Q2 revenue is another indicator that the company may be starting to come out of the woods."
Last year, the e-commerce giant reported a loss of $3.8 billion. The company in the recent past has intensified cost-cutting measures including two rounds of layoffs, cancelled products, and suspending physical store expansions.
Amazon Web Services has seen a 16% sales growth from 2022. The profit in the AWS segment is $21.4 billion. "That comes after sales growth slowed in the previous quarter, as cloud customers tightened their purse strings due to uncertainty about the economy's health," said the CNN Business report.
Chief Executive Officer Andy Jassy in a statement with the earnings report said: "While our AWS business navigates companies spending more cautiously in this macro environment, we continue to prioritise building long-term customer relationships."