Amazon CEO Jassy’s cost cuts deliver investors biggest profit beat since 2020

[{"selector":"#anim-e6deaa5e-dca5-4ed0-87e2-6b6b0889361f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.499999772451451%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Amazon CEO Andy Jassy showed investors his cost-cutting efforts are starting to bear fruit.

The company posted its biggest earnings beat since the fourth quarter of 2020.

[{"selector":"#anim-a59b9734-c40f-4289-b34a-389030b2b56b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.812499744007886%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Jassy has been aggressively slashing expenses through layoffs and eliminating unproven bets.

[{"selector":"#anim-2226a9a9-56cc-425f-b764-35f83acdbc0e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(21.874999829338595%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Jassy has been aggressively slashing expenses through layoffs and eliminating unproven bets.

[{"selector":"#anim-fe06f289-be46-463d-a33d-0ba7dc8ed9c0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(7.285155990807987%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] While his successor, Andy Jassy, also talks plenty about serving customers, he’s been forced by investors to get serious about profitability. And his efforts are paying off.

[{"selector":"#anim-bc1c46d8-ab78-4248-b26d-af757d7cf8a0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.499999772451451%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Amazon delighted investors on Thursday, posting earnings of 65 cents a share, blowing past estimates of 35 cents a share. The company’s stock surged almost 9% in extended trading.

[{"selector":"#anim-24ed5b8e-4a95-4df6-a6d6-3da4042b95d1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(7.848836953530699%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The last time Amazon delivered an earnings beat that big was in February 2021, when profit for the fourth quarter of 2020 came in at $14.09 per share, almost double analyst projections. At the same time, the company surprised investors by announcing Bezos would step down as CEO.

[{"selector":"#anim-512ad094-292d-4c3f-a139-f0bae8e65240 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(7.812499744007886%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Jassy closed out his second year at the helm in July. Under Jassy, Amazon has morphed into a leaner version of itself, as slowing sales and a challenging economy pushed the company to eschew the relentless growth of the Bezos years.

[{"selector":"#anim-81aa21a8-732b-4770-b616-6faa0de55299 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(7.812499744007886%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Jassy pared back underperforming projects in riskier, newer verticals like healthcare and grocery, froze corporate hiring and eliminated 27,000 jobs.

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[{"selector":"#anim-beec4c88-432f-42e5-86a8-36f5da0558ce [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] SWIPE UP