Sina Technology News On the morning of May 26th, Beijing time, it is reported that recently, Amazon CEO Andy Jassy said that the company's current top priority is to return to a relatively healthy profitability In terms of ability.
On Wednesday, local time, Amazon held an annual shareholders' meeting and Jiaxi attended the conference. This is also the first time he participated in the shareholders' meeting after he replaced Besos in July and served as Amazon's CEO.
Jiaxi told shareholders that before, the management successfully reduced the cost structure. As the company has been unusual recently, he is very confident that the company can return to the normal track of profitability.
In addition, Jiaxi also confirmed that the company was preparing to cut off some logistics warehouses to solve the problem of excess facilities.
Jiaxi said at the shareholders' meeting that management is taking a series of measures. For the market that does not need to be expanded, the company will suspend the warehouse construction plan. In addition, some places will not renew the lease after the end of the lease period. On the basis of the current physical facilities, we can continue to grow business. "
Jiaxi served as the head of Amazon's extremely unusual historical stage. In recent years, the world has encountered a new crown epidemic, and the U.S. inflation has reached a new high. The Federal Reserve has raised its benchmark interest rates. In addition, the occurrence of Russia and Ukraine's conflict has also had a huge impact on the United States and the world economy.
The epidemic has led to a significant increase in the operating costs of Amazon. The company needs to conduct nucleic acid testing to strengthen the cleansing and disinfection of the workplace. In addition, it is necessary to launch various health security measures for front -line employees. In addition, the new crown epidemic has led to the popularity of online retail. In order to meet the needs of soaring, Amazon has added physical facilities such as warehouses and recruited a large number of employees.
At the end of last year, factors such as global supply chain fluctuated and tense, difficulty recruiting in the United States, and inflation pressure increased the operating costs of Amazon again.
In February this year, the Russian -Ukraine conflict pushed up the price of American gasoline. At the same time, commodity prices in many countries in the world have soared collectively.
Last month, Jiaxi said in an interview that for Amazon, the cost of inflation, the new crown epidemic, and the Russian -Ukraine conflict rose, and it was difficult to digest the company.
Jiaxi said that in recent years, the company has encountered many unusual external incidents. Some events are within the control of the company, but external factors including inflation have exceeded the control of the company. Inflation has increased. The prices of marine transportation, aviation transportation, fuel, etc. have risen significantly. At present, Amazon management is trying to reduce operating costs.
In April, for a third -party network seller using Amazon's official distribution services, the company began to charge 5%of the sales amount to alleviate the increase in costs.
During the new crown epidemic, Amazon increased some logistics warehouses (order delivery centers), but the current usage rate is not ideal. In the past, Amazon encountered a shortage of workers and recruited a lot, but now the workers in the order center have experienced excess redundant. As e -commerce gradually cools down (Americans go shopping in physical malls again), some newly recruited employees are actually unnecessary.
Amazon Chief Financial Officer Brian Olsavsky said excess employees have led to a decline in production efficiency. Compared with last year, the cost of labor has increased by about $ 2 billion.