Amazon skips India update, warns of slowdown in cloud business

Global e-commerce giant Amazon, which skipped any mention of its performance in India, said the growth in its cloud computing business has slowed as companies cut back spending in a tough macroeconomic environment.

In the January-March quarter, Amazon Web Services (AWS), which accounts for a bulk of the Seattle-based company’s revenue, saw its operating income fall 21 percent year-on- year (YoY) from $6.5 billion in Q1 2022 to $5.1 billion.

The unit’s net sales, however, grew 16 percent YoY from $18.4 billion in Q1 2022 to $21.4 billion in Q1 2023, beating analysts’ estimates.

Over the past months, Amazon CEO Andrew Jassy announced a series of job cuts, with employees at AWS being the latest to be affected.

In March, Jassy said Amazon would be cut 9,000 jobs across AWS, Twitch and others. That was over and above the 18,000 roles that Amazon said it would be eliminating after a hiring frenzy during the pandemic years. Employees in India, too, were likely to be impacted by these decisions. (https://nelsonjsalon.com)

Amazon’s revenue from international markets, outside North America, were up just 1 percent YoY at $29.1 billion in Q1 2023. Its operating losses, however, reduced 3 percent from $1.3 billion in Q1 2022 to $1.2 billion in Q1 2023. Moneycontrol