Amazon sees opportunity to lower costs in fulfillment network, CEO says

By Thomson Reuters Apr 11, 2024 | 5:41 AM

(Reuters) – Amazon.com CEO Andy Jassy said the e-commerce firm sees opportunity to reduce costs in its fulfillment network, after trimming staff in a number of divisions over the recent months.

“As we look toward 2024 (and beyond), we’re not done lowering our cost to serve. We’ve challenged every closely held belief in our fulfillment network, and reevaluated every part of it, and found several areas where we believe we can lower costs even further while also delivering faster for customers,” Jassy said in a letter to shareholders on Thursday.

Shares of Amazon, which is also the world’s leading cloud computing services provider, were down about 1% in premarket trading.

Over the past few months, the company has laid off hundreds of staff in divisions including Amazon Web Services, Prime Video service, healthcare business and Alexa voice assistant unit, extending its massive job cuts over the past two years into 2024.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Anil D’Silva)