Amazon Earns $3.2 Billion In Earnings Despite Numerous Rounds Of Layoffs

Amazon is back in the black to start the year.

The world’s largest online retailer on Thursday announced a profit of $3.2 billion for the first quarter, a significant improvement from the period’s $3.8 billion loss and much over analysts’ expectations.

As Amazon (AMZN) has stepped up its cost-cutting measures in recent months, the company has recently turned a profit. The business has canceled goods, announced two rounds of layoffs, and decided against expanding its physical stores.

It also happens at a time when important aspects of Amazon’s company are still expanding despite persistent recessionary fears that could have an impact on business and consumer spending.

Revenue for the business climbed 9% from the same period last year. Amazon anticipates its net sales for the second quarter to increase by between 5% and 10% from the same time last year, or between $127 billion and $133 billion.

According to the findings, continuous cost-cutting initiatives are positively affecting Amazon’s business prospects, according to Jesse Cohen, senior analyst at Investing.com. Another sign that the corporation might be starting to emerge from the woods is Amazon’s positive revenue projection for the second quarter.

Another encouraging sign for the company’s entire business was the double-digit percentage growth recorded by Amazon Web Services, which has traditionally been a profit generator for the corporation.

Sales for the AWS segment increased by 16% from the prior year to $21.4 billion. This comes after sales growth slowed in the previous quarter as cloud customers cut back on spending as a result of concern over the state of the economy.

In a statement that was included with the results report, CEO Andy Jassy said, “While our AWS business navigates companies spending more cautiously in this macro environment, we continue to prioritize building long-term customer relationships.”

Amazon Earns $3.2 Billion In Earnings Despite Numerous Rounds Of Layoffs

Amazon is back in the black to start the year.

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