Amazon’s cost-cutting measures during the holiday season likely won’t pay off

SalesMoney Matters
Written By Jennifer Joslyn

💙 Amazon’s cost-cutting measures during the holiday season likely won’t pay off.

At least… not right away. With Q4 underway, the retailer made massive cost reductions as peak season begins to set in. Amazon CFO Brian Olsavsky stated in a Q3 earnings call that the company’s mission is to kick off Q1 with a strong market presence, but this reminder comes on the heels of Amazon failing to meet its operations cost improvements goals during Q3 - to the tune of $1.5 billion. Customer demand is fading after two years of operational boom, and Amazon has responded by closing and delaying the construction of dozens of distribution centers across the nation. Will inflationary pressures keep sales relatively low as Christmas approaches?

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Jennifer Joslyn
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