Jeff Bezos’ top tips for managing an economic downturn

Washington
CNN Business
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Amazon founder Jeff Bezos recently warned consumers and businesses that they should consider putting off big purchases in the coming months as the global economy faces a slowdown and faces a potential recession.

The business leader gave his strongest advice yet on the faltering economy in exclusive interview With CNN’s Chloe Millas on Saturday at Bezos’ home in Washington, DC.

Bezos urged people to put off spending on expensive items like new cars, televisions and appliances, suggesting that delaying big purchases is the surest way to retain some “dry powder” in the event of a prolonged economic downturn. At the same time, Bezos added, small businesses may want to avoid making large capital expenditures or acquisitions during this turbulent time.

If enough consumers follow Bezos’ advice, it could mean a drop in sales for Amazon, the e-commerce giant Bezos founded and which created the vast majority of the billionaire’s fortune.

New York times mentioned On Monday, Amazon plans to cut its workforce, lay off 10,000 workers, the largest cut in the company’s history. This is in addition to the previously announced hiring freeze in the company’s workforce. The company is second only to Walmart in terms of the number of people it employs in the United States.

Amazon

(AMZN) It said in October that it expected sales for the last three months of the year Much lower than Wall Street expectations. The weaker outlook came with rising inflation and looming recession fears weighing on consumer buying decisions as Americans focus more on traveling and eating out and less on buying discretionary goods.

The company’s stock is down more than 40% as prices rise and changing customer behavior weighs on Amazon and the broader technology sector.

Bezos said the prospect of worsening economic conditions makes it wise to save some cash if that’s an option.

“Take some risk off the table,” he said. “A little bit of risk reduction can make a difference.”

Last month, Bezos tweeted a warning to his Twitter followers, recommendation They “lock the doors”. In the interview, Bezos said the advice was for business owners and consumers alike.

He added that many might be upset now, but he argued that as an optimist he believed the American dream “is achievable and will become more achievable in the future” — anticipating that during his private lifetime, space travel could become widely available in the public.

Although the US economy is, technically, not in a recession, nearly 75% of potential voters in a CNN’s latest poll They said they feel like it does. Wages rose, but it is not enough to take snappy inflationMost notably, the high prices of essential items such as food, fuel and shelter. For those who have invested in stocks, it has not been a great year either, and this is especially difficult for retirees living on their investments.

Other business leaders have issued similar messages about the economy in recent months. Tesla

(TSLA) and Twitter CEO Elon Musk last month Acknowledged the demand for Tesla

(TSLA)It was “a little harder to get” and noted that Europe and China were experiencing “a recession of sorts.” Musk also warned that Tesla

(TSLA) It will fall short of the sales growth target.

Jamie Dimon, CEO of JPMorgan Chase in October Stock market panic By saying that a recession could hit the US in as little as six to nine months.