Jeff Bezos’ top tips for managing the economic downturn


Washington
CNN Business

Amazon founder Jeff Bezos recently warned consumers and businesses that they should consider postponing major purchases in the coming months as the global economy faces a slowdown and faces a possible recession. .

The entrepreneur offered his most raw advice yet on a faltering economy in a exclusive interview with CNN’s Chloe Melas on Saturday at Bezos’ home in Washington, DC.

Bezos urged people to postpone spending on big-ticket items such as new cars, TVs and appliances, noting that delaying big purchases is the surest way to conserve ‘dry powder’ in the event of a downturn. prolonged economy. Meanwhile, smaller companies may want to avoid making big capital expenditures or acquisitions during this uncertain time, Bezos added.

If enough consumers follow Bezos’ advice, it could mean lower sales for Amazon, the e-commerce giant Bezos founded and which created the vast majority of the billionaire’s wealth.

The New York Times reported Monday that Amazon plans to cut its workforce, laying off 10,000 workers, the largest reduction in the company’s history. This is in addition to the previously announced hiring freeze on its workforce. The company is second only to Walmart in the number of people it employs in the United States.

Amazon

(AMZN)
said in October that it expects sales for the last three months of the year to be significantly below Wall Street expectations. The weaker forecast came as rising inflation and looming recession fears weigh on consumer buying decisions, with Americans focusing more on travel and dining and less on buying discretionary goods. .

Shares of the company fell more than 40%, with soaring prices and changing customer behavior weighing on Amazon and the wider tech industry.

Bezos said the likelihood of worsening economic conditions makes it prudent to save money if that’s an option.

“Take some risks off the table,” he said. “Just a little risk reduction could make a difference.”

Last month, Bezos tweeted a warning to his Twitter followers, recommend that they “batten down the hatches”. The advice was aimed at business owners and consumers, Bezos said in the interview.

Many may be feeling the pinch now, he added, but argued that as an optimist he believes the American dream “is and will be even more achievable in the future” – projecting that from in his lifetime, space travel could become widely available to the public.

Although the U.S. economy is not technically in a recession, nearly 75% of likely voters in a recent CNN poll said they felt that was the case. Wages are up, but not enough to take the stifle inflation, including high prices for basic necessities such as food, fuel and housing. For those who invest in equities, the year has not been great either, and it is particularly difficult for retirees who live off their investments.

Other business leaders have issued similar messages about the economy in recent months. You’re here

(TSLA)
and Twitter CEO Elon Musk last month application accepted for Tesla

(TSLA)s was “a little harder” to find, and noted that Europe and China are in a “sort of recession”. Musk also warned that Tesla

(TSLA)
would be below its sales growth target.

Jamie Dimon, CEO of JPMorgan Chase, in October scared the stock market saying that a recession could hit the United States in as little as six to nine months.

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