Jeff Bezos’ top tips for managing the economic downturn

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

The business leader offered his toughest advice yet on the faltering economy in an exclusive sit-down interview with CNN’s Chloe Melas at Bezos’ Washington, D.C., home on Saturday.

Bezos urged people to hold off on spending for big-ticket items like new cars, TVs and appliances, noting that delaying big purchases is sure to have some “dry powder” in the event of a prolonged economic downturn. is the way. Meanwhile, small businesses may want to avoid large capital expenditures or acquisitions during this uncertain time, Bezos said.

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

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

Amazon (AMZN) said in October that it expected sales in the final three months of the year to be well below Wall Street’s expectations. The weaker forecast came as rising inflation and recession fears weigh on consumer buying decisions as Americans focus more on traveling and eating out and less on buying discretionary goods.

The company’s stock has fallen more than 40% due to rising prices and changing customer behavior, which is weighing heavily on Amazon and the broader tech sector.

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Bezos said saving some cash in case the economic situation is likely to worsen is an option, if it’s an option.

“Take some risk off the table,” he said. “Reducing even a little risk can make a difference.”

Last month, Bezos tweeted a warning to his followers on Twitter, recommending that they “fight out the hatches.” Bezos said in the interview, the advice was for business owners and consumers alike.

Many are feeling the pinch now, he said, but argued that as an optimist he believes the American Dream “will be even more attainable in the future” – anticipating that in his own lifetime , space travel may become widely accessible to the public.

Although the US economy is not, technically, in a recession, nearly 75% of likely voters in a recent CNN poll said they think it is. Wages have risen, but not enough to offset inflation, especially the higher prices of necessities such as food, fuel and shelter. For those investing in stocks, it hasn’t been a great year, and it’s been especially tough for retirees who have been living off their investments.

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Other business leaders have issued similar messages about the economy in recent months. Tesla (TSLA) and Twitter CEO Elon Musk acknowledged last month that demand for Tesla (TSLA) was “a little tough,” and said Europe and China are experiencing a “slowdown of sorts.” Musk also warned that Tesla (TSLA) would fall short of its sales growth target.

JPMorgan Chase CEO Jamie Dimon rocked the stock market in October by saying that a recession could decimate the United States in six to nine months.


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