Amazon posts $3.2 billion profit as it goes through multiple rounds of layoffs

The company announced Thursday that it posted net income of $3 billion, or $6.04 a share, in the fourth quarter. That's a reversal from a loss of $241 million, or 52 cents a share, in the year-ago period. Amazon is starting the year off with a net income of $3 billion.

Amazon posts $3.2 billion profit as it goes through multiple rounds of layoffs


Amazon has started the new year in the black.

The ecommerce giant reported on Thursday a profit for the first three months of $3.2 billion, a huge improvement from the $3.8 billion loss in the quarter before and well above analysts' expectations.

Amazon (AMZN), which has been reducing costs in recent months, is now turning a profit. The company announced two rounds layoffs and cancelled products. It also canceled physical store expansions.


Amazon is also growing in key areas despite the lingering fears of recession that could affect corporate and consumer spending.

Revenue increased by 9% in the second quarter compared to the previous year. Amazon's net sales are expected to increase between 5% and 10 percent from the previous year, or between $127 billion and 133 billion.

Jesse Cohen is a senior analyst for He said that the results show that Amazon's ongoing cost-cutting efforts are having a positive effect on its business prospects. Amazon's strong Q2 revenue guidance is an indication that the company might be coming out of its woods.

Amazon Web Services has been a major profit generator for the company for many years. The quarter saw a double-digit growth in percentage, another positive sign for the overall business.

AWS segment revenues increased by 16% over the previous year to $21.4 billion. This comes after the sales growth had slowed down in the previous quarter as cloud customers tightened up their purse strings because of uncertainty over the economy.

In a statement that accompanied the earnings announcement, CEO Andy Jassy stated, 'While our AWS Business navigates companies to spend more cautiously in this global environment, we continue prioritizing building long-term relationships with customers.'