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Jeff Bezos is not the most optimistic man right now. After all, he has little hope for the economy – US and global – right now. Amazon’s founder has advised people not to buy TVs, cars and postpone big purchases for the coming months – his worst advice in a sluggish economy. All these suggestions were made by the fourth richest man in the world in a sit-down interview with CNN on Saturday at his home in Washington DC.
As the global economy struggles with a potential recession, Bezos feels it would be wiser for people to hold off on big-ticket spending for the time being as this was the surest way to keep “powder dry” in the event of a prolonged recession.
He goes on to add that if you are a small business, you may want to avoid making large capital expenditures or purchases during these uncertain times. With economic conditions likely to worsen sooner rather than later, Bezos thinks it might be wise to save some money if you have a choice.
The advice would be good for the 10,000 Amazon workers who have been laid off as part of the company’s plan, according to a New York Times report on Monday. Amazon – the company founded by Jeff Bezos and the e-commerce giant that made him a billionaire – has announced that it will make the largest part of the workforce in its history due to the economic downturn. The 10,000 workers will represent about three percent of Amazon’s corporate workforce and less than one percent of its more than 1.5 million global employees, including part-time and hourly workers.
The company’s stock has fallen more than 40 percent due to rising prices and changing consumer preferences that hit hard at the e-commerce giant and the broader technology sector. And these layoffs ahead of Amazon’s popular holiday sales continue to underscore the impact of the global economic downturn on the populous e-commerce giant, the second-largest employer in the US, behind only Walmart.
And people not listening and following Bezos’ advice are among the worst things that could happen to Amazon right now. Because, Bezos’ advice to reduce big-ticket purchases, lower cash flow and the economy in general means lower sales for Amazon. But now considering that he now owns less than 10 percent of the company since he stepped down as Amazon CEO last year, Amazon’s decline may not matter as much to him, and people may take his advice at face value. .
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