Advice from Jeff Bezos - Amazon billionaire to deal with recession
Amazon founder Jeff Bezos recently predicted that the global economy is facing a recession, and he advised both users and businesses to prepare for these changes.
Jeff Bezos has given advice that is sure to save people's finances in these financially difficult times. He discourages large purchases like cars, TVs and other big-ticket items as well as saving money by not investing more than necessary when business may be unstable for an extended period of time due to plunging economies around the world. While small businesses should take a conservative approach with their spending so they don't pile onto already high debt levels disaster can happen quickly without warning
If everyone follows the advice given by Bezos, then Amazon’s profit margin will be lowered.
The news of Amazon cutting over 10,000 jobs was announced by The New York Times on November 14. This scale in layoffs makes it the largest ever seen at company headquarters and will surely have an effect throughout their global workforce as well! Earlier this year they also announced a hiring freeze within America's office block which comes second only to Walmart when considering how many employees each corporation has active right now
In October, Amazon predicted that Q4 2022 sales would be significantly below Wall Street's expectations. The forecast is made in the context that inflation continues to increase, and the risk of recession affects people's purchasing decisions. Americans spend more money on dining out and travel, and less on unplanned goods.
Amazon's stock has fallen more than 40% this year due to rising prices and changing customer behavior. The company in particular, as well as other technology companies have been impacted hard by these events affecting their profitability greatly.
According to Bezos, the possibility of worsening economic conditions makes saving an option worth considering. “Let's remove the risks. Just reducing the risk makes a difference," the former Amazon CEO said in an exclusive interview on CNN.
Last month, he tweeted that everyone should "close the hatches," an idiom that implies preparing for the tough times ahead. Still, a self-proclaimed optimist, he believes the "American dream" will achieve more in the future.
Technically, the US economy has not yet fallen into a recession. But in a recent CNN survey, 75% of participants said they felt like they were in a recession. Wages increased but did not keep pace with inflation, most essential commodities such as food, fuel, and gasoline increased sharply. For many stock investors, this year has not been positive either. In particular, it is even harder for retirees to live off of investments.
Other business leaders have sent similar messages about the economy in recent months. For example, Tesla CEO Elon Musk acknowledged that demand for Tesla electric cars has decreased and that the company will not meet its sales growth target. In October, JPMorgan Chase CEO Jamie Dimon spooked the stock market by suggesting a recession would hit the US in the next six to nine months.