Amazon’s cost-cutting measures lead to big jump in profits: All the details – Times of India

Amazon It reported strong third-quarter results on Thursday, where revenue growth and operating income tripled year over year.
Net sales increased 13% to $143.1 billion in the third quarter, compared to $127.1 billion in the third quarter of 2022. Operating income rose to $11.2 billion in the third quarter, compared with $2.5 billion in the third quarter of 2022.
Amazon posted an operating margin of 7.8%, its highest since the first quarter of 2021. Amazon's cost-cutting measures — including laying off thousands of employees — seem to have worked. It was the highest operating margin Amazon has posted in two years.
Brian OslawskiAmazon's CFO shed light on the cost-cutting measures the company has taken. It told investors that revenue rose $1.6 billion in the quarter AWSDriven “primarily by reducing our headcount in Q2 as well as hiring, rehiring open positions.”
He also said other cost-cutting measures helped. “There was also a lot of spending control in non-human categories like infrastructure spending and also discretionary spending,” he told investors.
Impressive figures in the third quarter
The strong results were driven by continued growth in Amazon's e-commerce business as well as its cloud computing business. Amazon Web Services (AWS).
“We had a strong third quarter as our cost of service and delivery speed to our stores took another step forward, our AWS growth continued to stabilize, our advertising revenue increased dramatically, and both total operating income and free cash flow increased significantly.” said Amazon CEO Andy Jassy in the statement.
Amazon's e-commerce business continued to grow in the third quarter, with sales up 7%. The company's third-party vendor market also continued to grow, with sales up 9% to $34.3 billion. Third-party sellers now account for more than half of Amazon's total e-commerce sales, the company revealed.
AWS continued to be a key driver of Amazon's growth in the third quarter, with sales up 12% to $23.1 billion. AWS is the world's leading cloud computing platform and it provides a wide range of services to businesses of all sizes. AWS's growth has been driven by strong demand for its cloud computing services, such as compute, storage, database and network services. AWS is also seeing strong growth in its emerging services, such as machine learning and artificial intelligence, Amazon said.