(Reuters) – Amazon.com warned on Thursday that its operating profit was likely to continue to slide in the current quarter as mass layoffs were not enough to offset lower consumer and customer spending on its services cloud.
While Amazon’s holiday season revenue beat Wall Street expectations, sales growth for lucrative cloud computing services slowed in the fourth quarter.
Amazon expects to post $0 billion to $4 billion in operating profit in the fourth quarter, compared to $3.7 billion in the same period a year ago and $4.04 billion expected by analysts, according to research firm FactSet.
Shares of the e-commerce giant fell 5% in aftermarket trading, erasing their 7% gain before Wall Street’s close on Thursday.
Faced with high inflation and economic uncertainties in 2023, Amazon CEO Andy Jassy is working to cut costs and last month announced more than 18,000 layoffs across various departments.
(Written by Jeffrey Dastin in San Francisco and Tiyashi Datta in Bangalore, French version Tangi Salaün)
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