'Postpone large purchases': Amazon founder Jeff Bezos warns of recession
Billionaire entrepreneur and Amazon founder Jeff Bezos has warned of economic recession in the world. He advised businesses and consumers to hold on to their large purchases during the holiday season as the recession, he forecasts, is in the offing. The founder of America-based world's largest e-commerce, Amazon, made the startling statement during an interview with CNN.
Why does this story matter?
- Bezos founded the e-commerce giant Amazon, formerly known as Cadabra Inc. and now worth over $438 billion, in 1994.
- The statement by Bezos comes as several multinational companies are carrying out major layoffs.
- According to a May report by International Labour Organization, following significant growth in the last quarter of 2021, about 112 million might have lost jobs in the first quarter of 2022.
Bezos asks people to keep the cash safe
Bezos further advised people "to keep their cash safe and avoid unnecessary spending in the coming months," citing the impending recession. While addressing American families, the business tycoon advised them to avoid making big purchases. He told the people of the United States that the country was staring at a recession and they should avoid purchases such as new cars, TVs, etc.
Reduce the possibility of risk amid 'recession'
Bezos asked people to avoid taking risks amid the anticipated recession and said, "Keep some dry powder on hand... a little bit of risk reduction could make the difference for that small business if we do get into even more serious economic problems. You've got to play the probabilities a little bit." He further said, "Hold onto your money, and see what transpires."
'Economy does not look good right now'
Bezos, during the interview, further stated that the economy does not look healthy right now as he said that "things are slowing down." He remarked companies across the world are carrying out major layoffs. To note, Amazon has decided to lay off nearly 10,000 employees until next year "as part of saving costs." Amazon reportedly asked many employees to voluntarily resign before November 29.
To 'save costs,' major multinational companies cut jobs
In the past few months, several top multinational companies besides Amazon have cut down jobs. Meta, which owns social media platforms Facebook, Instagram, and messaging application WhatsApp, announced that it will be firing 11,000 employees "as part of saving costs." For similar reasons, Twitter, now owned by Elon Musk, also recently laid off nearly 3,500 employees, including its Chief Executive Officer Parag Agrawal.