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Business News/ News / World/  'Don't buy car, refrigerator' this holiday season: Jeff Bezos advises people
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'Don't buy car, refrigerator' this holiday season: Jeff Bezos advises people

Founder of Amazon advises consumers to keep their cash safe and avoid unnecessary spending.

Jeff Bezos had earlier said he would give away most of his $124 billion wealth. Photo: AFPPremium
Jeff Bezos had earlier said he would give away most of his $124 billion wealth. Photo: AFP

Amazon founder Jeff Bezos has given some "spending" tips to consumers as he warns that recession is looming.

The billionaire has advised consumers to keep their cash safe and avoid unnecessary spending during the holiday season.

In an interview with CNN, Bezos recommended that American households avoid the purchase of big-ticket items such as refrigerators, or a brand new cars, given the risk that economic conditions worsen.

Bezos said, "If you are an individual and you are thinking about buying a large-screen TV, maybe slow that down, keep that cash, and see what happens. Same thing with a refrigerator, a new car, whatever. Just take some risk off the table".

Additionally, the former CEO of Amazon suggested that small-business owners consider holding off on investments in new equipment, and build their cash reserves instead.

"Take as much risk off the table as you can," he said. "Hope for the best, but prepare for the worst," Bezos made the comments in a CNN interview that aired this week.

Separately, Bezos said he will give away the majority of his $124 billion net worth during his lifetime. The e-commerce pioneer told the TV channel he will devote the bulk of his wealth to fighting climate change and supporting people who can unify humanity in the face of deep social and political divisions.

Bezos is currently executive chair at Amazon transitioning to the role last year as Andy Jassy took up the CEO reins.

The e-commerce titan has begun layoffs after other tech companies such as Twitter, Meta, Lyft, etc trimmed staff as they face higher interest rates and sluggish consumer spending in the US and a strong dollar abroad.

US media have previously reported that the platform and its various branches will lay off about 10,000 employees.

Jassy did not confirm the figure, but he said that the process had begun and would continue early next year.

The first teams affected were those dealing with the brand's electronic devices such as Kindle e-readers.

"There will be more role reductions as leaders continue to make adjustments," he wrote.

"Those decisions will be shared with impacted employees and organizations early in 2023. We haven't concluded yet exactly how many other roles will be impacted."

Jassey said that in the roughly 18 months he has been CEO, "without a doubt, this is the most difficult decision we've made".

The layoffs follow an aggressive hiring spree.

With business booming due to the coronavirus pandemic as cooped up people turned in earnest to online shopping, Amazon doubled its workforce from the first quarter of 2020 to 1.62 million employees two years later.

But with the economy souring, two weeks ago Amazon announced a hiring freeze and its workforce has already decreased compared to the beginning of the year.

The US retail giant saw its net profit fall by 9% year-on-year in the third quarter.

And for the current quarter, the crucial holiday season, the group expects growth to be anemic by its standards, between 2 and 8% year-on-year.

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Updated: 21 Nov 2022, 11:45 AM IST
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