In his yearly address to Amazon.com, Inc. (AMZN) investors, CEO Andy Jassy wrote that the company will continue to cut costs despite increasing investments in innovations such as artificial intelligence (AI).
Amazon To Continue Cutting Costs Despite Investments In AI
The firm recently faced economic challenges that tripped up its growth. In 2022, Amazon axed more than 27,000 jobs, the largest in the company’s history. These organisational moves are ongoing, and in 2024, the company trimmed its cloud computing, Prime Video, and Twitch segments.
Jassy, who took over when Jeff Bezos stepped down in 2021, assured investors that the company is continuing to explore growth opportunities to bolster its long-term resilience. He emphasised the value of “primitive services” as essential components initiating new projects and profitability. He further wrote:
Andy Jassy, LinkedIn
I think every one of us at Amazon believes that we have a long way to go, in every one of our businesses, before we exhaust how we can make customers’ lives better and easier, and there is considerable upside in each of the businesses in which we’re investing.
Jassy also highlighted the important role played by generative AI and stated that he believes it will become a leading primitive service or cornerstone in the company. Jassy added that this technology is going to shape the future of Amazon’s cloud computing.
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The company’s main avenues of revenue are its retail, Prime subscription and cloud computing divisions. Jassy foresees that generative AI will feature heavily in Amazon Web Services (AWS).
Amazon currently has a market cap of more than $1.9tn.
