It appears even the mega retailer’s like Amazon aren’t exempt from the pressures of rising costs.
In a quarterly filing Reuters referred to as “disappointing,” Amazon has revealed the impacts of recent business challenges.
Despite massive gains throughout the pandemic, as consumers chose delivered goods over in-person shopping, the company’s outlook has slowed.
Amazon’s quarterly growth rate was the slowest since the dot-com bust in 2001 and the company posted a net loss of $3.8 billion.
Forecasts suggest that growth could dip further in Q2.
Amazon is blaming a heavy cost burden due to wage increases needed to attract and retain workers amid frantic demand.
Fuel prices are making deliveries more expensive and also weighing on the finances of Amazon customers, who are buying less.
CEO Andy Jassy assured investors that Amazon was “squarely focused on improving productivity and cost efficiencies” saying they “have done it before.”