Amazon's third-quarter earnings disappointed investors on Thursday, sending the company's stock into a tailspin. Shares of the e-commerce giant immediately fell more than 20% in after-hours trading.
The company posted weaker-than-expected forecasts for the holiday season, emphasizing the need to cut costs across the company. Amazon expects to generate revenue of between $140 billion and $148 billion in Q4 of 2022, falling short of analysts' estimates of around $155 billion.
Brian Olsavsky, Amazon's CFO, said that the company was targeting headcount in an effort to pull back on spending. Employees were notified on Friday that Amazon slashed 150 roles on its Amp live radio division, cutting the team's staff in half.
"We are taking actions to tighten our belt," Olsavsky said.
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