In the context of: There’s just over a week left of Black Friday and Cyber Monday, which means retailers are getting ready to start (or have already started) their sale sales. Amazon sees billions of dollars worth of purchases during this period, so it’s somewhat surprising to hear the company’s founder and CEO, Jeff Bezos, advise people to be frugal.
In an interview with CNN this week (via The telegraph), Bezos was asked if he thought consumers should “control the vents” in response to the global economic downturn. “My advice to people is to take some risk off the table,” Bezos said. “If you’re an individual and you’re thinking about buying a new big screen TV, maybe slow it down. Keep that money, and see what happens. Same with a new refrigerator or car, whatever.”
Given spiraling inflation, rising energy costs, and constant reports of companies laying off thousands of employees, it’s easy to see Bezos’ point of view. But not everyone may appreciate being asked to spend less money by the world’s fourth-richest person, who has a net worth of $120 billion — though he plans to donate. Mostly away.
Many shoppers are already tightening their bar as the cost of living rises. Coupled with the post-lockdown hangover, the reluctance to cash out on expensive and unnecessary purchases has affected me phone and computer/hardware industries, among others.
With sales events and holidays, the fourth quarter is Amazon’s biggest, but the company lowered its forecast for the fourth quarter to between $140 billion and $148 billion — well below the $155 billion analysts expected — representing growth of between 2 to 8%. Amazon experienced 9% growth over the fourth quarter of last year.
Amazon is tightening its belt. In addition to the company-wide cost cuts being implemented by CEO Andy Jassy, the company plans to lay off 10,000 office workers. That’s just below the Meta of 11,000 employees to leave ofbut more than 3700 Twitter is losing. liftAnd the MicrosoftAnd the popAnd the TeslaAnd the Robinhood They are just some of the other tech companies that have cut staff this year.
The other side of the argument, of course, is that if you’re intent on buying a new TV, graphics card, laptop, or whatever, buying it at a discount during sales makes more sense than spending more later. Just don’t tell Jeff.