Amazon Founder Jeff Bezos Loses More Than $670 Million In One Day As Stock Plunges After Layoff Announcement

Amazon Founder Jeff Bezos

Amazon Founder Jeff Bezos Loses More Than $670 Million In One Day As Stock Plunges After Layoff Announcement

January 7, 2023: New Delhi: Shares of Jeff Bezos-founded e-commerce giant Amazon fell nearly 1 percent on Wednesday.

The stock settled at $85.14, down from Tuesday’s close of $85.82. The recent drop in Amazon stock can be attributed to CEO Andy Jesse’s announcement to lay off thousands of employees.

The e-commerce giant said on Wednesday that 18,000 of its employees will be affected by layoffs amid an uncertain economy. CEO Jassi attributed the move to an uncertain economy and rapid hiring over the past several years.

The Amazon stock price slip has also affected the net worth of founder Jeff Bezos who lost more than $600 million in a single day.

Bezos’ fortune took a $675 million hit as of Wednesday’s close, according to the Bloomberg Billionaires Index. The billionaire is currently worth $108 billion in the index and is the sixth richest person in the world.

It is worth mentioning here that Bezos has slipped several places in the rich list in recent months. In September last year, Indian businessman and country’s richest man Gautam Adani overtook Amazon’s Bezos to become the world’s second richest person.

The e-commerce giant’s market valuation also took a big hit last year as it lost $834.06 billion in market capitalization in 2022.

Amazon and Apple were the two biggest losers in terms of market cap in the past year. Apple lost $846.34 billion in value, slightly more than Amazon, CNBC reported.

The e-commerce major’s earnings fizzled and fourth-quarter guidance was disappointing.

Amazon layoff

Meanwhile, the company has announced layoffs that will affect up to 18,000 of its employees. CEO Jesse said in a statement that after the reductions made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles.

While the company typically waits to communicate these results until they can speak to those directly affected, Jesse said they had to share the news earlier “because our teammates leaked this information externally.” .

Amazon will begin communicating with affected employees (or employee representative bodies where applicable in Europe) from January 18. To help employees affected by the layoffs, the e-commerce major is working to support them.

Jassy announced that they are offering packages that include severance pay, transitional health insurance benefits and external job placement support.

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