Given those losses and the scale of its investments, Jassy seems to be tamping down expectations for 2023 when he says, "There's a lot to figure out how to optimize and how to make more efficient and more productive." Typically, businesses, especially those of the caliber of Amazon, have those things figured out when they decide to spend tens of billions of dollars on a project. Indeed, Amazon's expansion of fulfillment centers and last-mile capacity during the pandemic was a tremendous undertaking, and a big part of the reason why the company spent nearly $125 billion in capital expenditures over the last two years, driving significant free cash flow losses in both years. And so there's a lot to figure out how to optimize and how to make more efficient and more productive." Bezos steps down from Amazon on Monday - exactly 27 years after he founded it. And so when you do both of those things to meet the huge surge in demand, you're going to - just to get those functional. Amazon refers to its warehouses as 'fulfilment centres'. "It's important to remember that over the last few years, we've - we took a fulfillment center footprint that we've built over 25 years and doubled it in just a couple of years.Īnd then we, at the same time, built out a transportation network for last mile roughly the size of UPS in a couple of years. Amazon committed a tactical errorĪsked if and when Amazon would drive profitability in its North America segment, Jassy said: While the macroeconomic headwinds offer one reason for the struggles, CEO Andy Jassy gave a better explanation on the earnings call.
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