WebProNews

Tag: Brian Olsavsky

  • Amazon Uses Attrition to Reduce Headcount by 100,000

    Amazon Uses Attrition to Reduce Headcount by 100,000

    Amazon has revealed that it has reduced its headcount by 100,000, mainly through attrition.

    Companies across multiple industries are slowing or freezing hiring and laying off employees in an effort to reduce costs and weather an impending recession. In its latest quarterly earnings, Amazon revealed it let attrition reduce its headcount by 100,000 following a major expansion during the height of the pandemic.

    “As the variant subsided in the second half of the quarter and employees returned from leave, we quickly transitioned from being understaffed to being overstaffed, resulting in lower productivity,” Chief Financial Officer Brian Olsavsky said, via The Boston Globe.

    This isn’t the first measure the company has taken to reduce costs. Amazon’s Global Corporate Affairs group announced it would flatten hiring and the company is reportedly looking to offload 10 to 20 million square feet of real estate.

  • Amazon Prime Going Up $20 to $139 a Year

    Amazon Prime Going Up $20 to $139 a Year

    Amazon is raising the price of its popular Amazon Prime to $139, a $20 increase over the current price.

    Amazon Prime is one of the company’s main selling points, giving customers faster shipping and access to a large catalog of streaming TV and movies. Given its price, at $119 a year, the service is competitively priced, given all it includes.

    Unfortunately, the company announced at its fourth-quarter earnings that it was raising the price to $139 a year, according to The Hollywood Reporter. Meanwhile, monthly plans will increase by $2 to $14.99 a month.

    “Since 2018, Prime Video has tripled the number of Amazon originals,” CFO Brian Olsavsky told analysts, saying that “the continued expansion of Prime member benefits, and the increased use we have seen, along with increased costs and inflation,” were contributing factors in the decision.

    Another major factor is likely Amazon’s deal to broadcast Thursday Night Football, a contract that is costing the company $1 billion per year.

  • Amazon CFO Thomas Szkutak To Retire

    Amazon CFO Thomas Szkutak To Retire

    Amazon announced on Wednesday that Senior Vice President and Chief Financial Officer Thomas J. Szkutak will retire from the company next June. He has been CFO since joining Amazon in 2002.

    Szkutak currently oversees the controller, treasury, investor relations, tax, internal audit and facilities functions at Amazon, in addition to the financial management of its business units.

    VP of Finance Brian T. Olsavsky will succeed him Szkutak as CFO, reporting directly to CEO Jeff Bezos.

    Bezos said, “Tom’s impact over the past 12 years is evident in every part of our business. Under Tom’s stewardship, customers have benefitted from category expansion and geographical expansion, along with amazing new businesses like AWS and Kindle. The day Tom joined the company was a very lucky one for Amazon’s shareowners and customers and for all of us who’ve had the pleasure and fun of getting to work with him. We wish Tom and his family all the best in their next round of adventures.”

    Szkutak added, “It’s been a privilege for me to work with so many talented people who are continually inventing on behalf of customers, and now I look forward to spending more time with my family and other outside interests. I’ve worked very closely with Brian Olsavsky over the past 12 years and have seen firsthand how talented he is, and I have confidence that he will be a great CFO for Amazon.com.”

    Olsavsky also joined the company in 2002. He and Szkutak will work together on the transition of CFO responsibilities over the next 10 months.

    Image via Google Play