Why Amazon has to “keep reducing costs”
“We have to keep reducing costs so that we can afford the big investments in big new businesses,” Amazon’s retail CEO Doug Herrington told employees during an all-hands meeting last month, according to a recording obtained by Business Insider.
That means reducing how much it costs to fulfill customers’ orders, creating more efficiencies everywhere from its warehouses to its deliveries.
In case you’re wondering why these cost cuts are needed as Amazon continues to print money, it’s all in the service of AI. Amazon, which has already been cutting projects and staff, recently said it expects to spend a whopping $100 billion in capex this year — more than its biggest tech competitors — as it continues to build out its AI infrastructure.
In case you’re wondering why these cost cuts are needed as Amazon continues to print money, it’s all in the service of AI. Amazon, which has already been cutting projects and staff, recently said it expects to spend a whopping $100 billion in capex this year — more than its biggest tech competitors — as it continues to build out its AI infrastructure.
