Bloomberg News reports that Amazon.com Inc., Intel Corp, and Meta Platforms Inc., the tech giants that have touted their growth plans ambitiously, are presently being judged by different measures, and that is how fast they can make the curbs.
On Thursday, after reporting earnings for the slowest holiday season ever, Amazon promised to curb expenses. It said it would try to halt recruitment in some businesses and wind down the services and products. The company already had to close down a delivery robot business in recent weeks, aside from a kids-focused calling device and a virtual tour feature.
Brian Olsavsky, the chief financial officer of Amazon, said they are taking such actions to further tighten their belts. He also said that the company believes the same resources can be spent judiciously elsewhere.
While at Intel, the talks have shifted from the expansion plans of the chipmaker to a reduction in headcount aggressively. Following an announcement of a 20% drop in last quarter’s revenue reduction, the company was planning to cut jobs and spending as it aims to save as much as $3 billion in the next year.
Meta, the owner of Instagram and Facebook, was found drawing ire in the present week partly for being unable to put a lid on the expenses. The second straight disappointing earnings posted by the company, however, Mark Zuckerberg, the Chief Executive Officer, is urging the stakeholders to exercise patience with the company’s expansion plans.
Bloomberg News reports that with the cost growing in Meta, which includes expenses on an elusive metaverse dream, investors are sending down the shares by 25% Thursday.
Even Apple Inc., faring better than its tech peers in the current year, has been cutting back on expenses. Although mass layoffs are something it has avoided, plans for trimming expenses in 2023 are what the company aims at, aside from slowing down its hiring.
Companies are facing strong dollar and inflation that reduced overseas sales value. The economic outlook, which is quite choppy, has kept consumers worried while cutting back on their expenses.
It was found that few companies can escape unscathed. These were the ones that cut back on their expenses.
Those companies that have remained in touch with the personal computer market, which includes Hynix and Intel, have been under pressure since this market started to collapse. It was seen that consumers had snapped up personal computers at the time of the pandemic, as they had to equip their homes and workstations; however, they have now put their purchases on hold.
Seagate Technology Holdings Plc, the largest computer hard drive manufacturer, is announcing plans to eliminate 3000 jobs this week.
News Source: Bloomberg