Amazon has received a loan of $ 8 billion for waiting for the market wind.
Provided by DBS Bank, Mizuho Bank and others, the loan – which will mature in 364 days (January 3, 2024), with an option to extend for another 364 days – will be used for “business purposes general,” Amazon told a. the filing of the US Securities and Exchange Commission. In a statement, an Amazon spokesperson told TechCrunch that the loan adds to the range of financing options the company has put in place in recent months to combat the “global macroeconomic uncertainty.”
“Like any company, we constantly evaluate our operating plans and make financing decisions – such as entering into loan agreements or issuing bonds – accordingly,” a spokesperson told by email. “Due to the uncertain macroeconomic environment, in recent months we have used various financing options to support capital expenditures, debt repayments, acquisitions and working capital needs.”
Amazon’s revenue has declined by the end of 2022 as the economy worsens. The tech giant spent billions doubling the size of its fulfillment network during the pandemic, a play that served it well at first but turned out to be blind.
Amazon has been forced to close or delay plans for more than a dozen properties as e-commerce sales grew more than expected last year. Another topic – rising energy costs – had a significant impact on Amazon’s business, and the company’s operating expenses rose 10% to $19.9 billion in Q3 2022.
To reduce costs, Amazon plans to reduce its workforce in early 2023, which is said to be 10,000 workers. The layoffs, which will be the largest in the company’s history, are said to be focused on Amazon’s human resources, Alexa and marketing divisions.
In other cost-saving measures, Amazon has frozen hiring for the company’s retail roles, shuttered its Amazon Care telehealth service, closed its US call center, and reduced Amazon Scout, a long-running delivery robot project. . These actions were not enough to prevent the company’s market cap from falling below $1 trillion for the first time since April 2020.
