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Jeff Bezos Warns Consumers to Postpone Large Purchases

John Galt

Updated: November 16, 2022

postpone large purchases
Editor’s Note:

EDITOR'S NOTE: As major layoffs hit the tech giants Twitter, Meta, and Amazon, we’re reminded that Amazon’s founder, Jeff Bezos, sounded the recession alarm as early as last month, warning his Twitter followers to “batten down the hatches,” urging them to postpone purchases of big-ticket items and hold off on large (business) investments. Why is this important? It seems as if the recession debate (whether we’re in one or not) may be prompting inaction on the part of consumers and investors when preparation may be the more prudent course. Bezos is thinking like a risk manager; in other words, it’s better to mistake a stone for a bear rather than a bear for a stone. He reminds us that a little “risk reduction” goes a long way. In short, under the current conditions of economic uncertainty, this is where optimism can kill your future economic prospects if you’re not careful.

As the global economy faces a potential recession, consumers would be wise to postpone large purchases in the coming months, Amazon Executive Chairman Jeff Bezos said in a sit-down interview with CNN, which aired Saturday.

After urging his Twitter followers to “batten down the hatches” last month, this is Bezos’ starkest warning yet about the economy—even as it could mean lower sales for Amazon.

“Take some risk off the table,” Bezos said. “Just a little bit of risk reduction could make the difference.”

Bezos said the same prudence should apply to business capital expenditures.

Major Layoff of 10,000

The New York Times reported Monday that Amazon plans to lay off about 10,000 people in corporate and technology jobs starting as soon as this week. That is on top of the corporate hiring freeze Amazon announced earlier this month.

The job cuts will focus on the e-commerce giant's devices unit, which houses voice-assistant Alexa, as well as its retail division and human resources, according to the report, which also said the total number of layoffs remains fluid.

As of Dec. 31 last year, Amazon had more than 1.6 million full-time and part-time employees.

The news comes just weeks after Amazon warned of a slowdown in growth for the busy holiday season when it generates the highest sales, saying consumers and businesses had less money to spend due to rising prices.

The retail giant—the second biggest employer in the U.S. after Walmart—said sales for the final quarter of the year will be significantly below Wall Street expectations.

Amazon (AMZN) stock has fallen more than 40% as a result of inflation and changing consumer spending, which are also dampening the broader technology sector.

Despite his latest recession warning, Bezos stressed that the American Dream “is and will be even more attainable in the future.”

$124 Billion Pledge

In a separate interview with CNN Monday, Bezos said he will give away a majority of his $124 billion wealth during his lifetime.

Without providing further details, Bezos said he and partner journalist-turned-philanthropist Lauren Sánchez were "building the capacity to be able to give away this money."

Read Newsmax: Jeff Bezos Tells Consumers to Delay Big-Ticket Purchases | Newsmax.com

Originally published on News Max.

 

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