Bleak outlook for Amazon as international sales plummet

Sales across Amazon’s international business declined by eight per cent to $34.5 billion in the final quarter of 2022, according to the retail giant’s latest financial results.

Across the whole of 2022, the company recorded a net loss of $2.7 billion compared with profits of $33.4 billion.

During the same 12-month period, international sales were also down by eight per cent to $118 million, with operating income across the entire business falling by nearly half to just over $12 billion from almost $25 billion in the previous year.

Despite poor international results, the company still managed to record an overall sales boost of nine per cent to $514.0 billion in 2022.

The disappointing figures come after $200 billion was wiped from the company's valuation last year when it anticipated a slowdown in growth during the holiday season.

Amazon also recently revealed that it would kick-start its biggest wave of job cuts in the company's history.

In early January, Amazon boss Andy Jassy told employees in a public staff note that the company would lay off more than 18,000 workers. Later in the month it began axing roles across the US, Canada, and Costa Rica.

Fellow tech giant's Microsoft and Alphabet have also followed suit in announcing plans for major job cuts.

“In the short term, we face an uncertain economy, but we remain quite optimistic about the long-term opportunities for Amazon,” said Andy Jassy, Amazon chief executive, commenting on the financial results.

He added that the company is “optimistic” about what the future holds.

The company said it expects sales to grow between four and eight per cent in the first quarter of the year but anticipates operating income between zero and four billion dollars compared with $3.7 billion during the same period of 2022.

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