Amazon triples profit as CEO’s measures bear fruit

Amazon has more than tripled its profits in the past quarter, while sales rose 13 %: CEO Andy Jassy’s cost-cutting measures are clearly paying off.

Regional logistics networks

Amazon is back after a post-pandemic dip in sales figures last year. The e-commerce giant sold 13 % more in the three months ending 30 September, beating analysts’ expectations at 143.1 billion dollars (135 billion euros). Profits tripled to 9.9 billion dollars (9.4 billion euros), up from 2.9 billion dollars a year ago.

Amazon took another step forward, says CEO Andy Jassy, as the restructuring of the company’s United States logistics network into eight regional networks brought stock closer to consumers and enabled faster delivery. Those quick deliveries are driving up ordering frequency, it turns out.

3 % fewer staff

Jassy cut costs this year, as the profit rise proves. Amazon ended the summer with 1.5 million employees, 3 % fewer than a year earlier. However, this still is twice as many as before the pandemic. Income increases came from the company providing ads (+ 26 %) and other services to sellers (+ 20 %) on its platform.

For the important holiday quarter, the retail giant expects total net sales between 160 and 167 billion dollars, up 12 % from a year earlier. Growth may slow down slightly due to rising interest rates and because people are flocking more to physical shops again. It is also noteworthy that consumers are still spending money, but are looking for bargains and cheaper items.