- Amazon.Com, Inc. AMZN bagged an $8 billion loan from DBS Bank, Mizuho Bank, and others, the loan which will mature in 364 days (January 3, 2024).
- The loan carried an option to extend for another 364 days will serve general corporate purposes.
- Amazon told TechCrunch that the loan adds to the range of financing options the company has tapped recently to hedge against the “uncertain macroeconomic environment.”
- “Like all companies, we regularly evaluate our operating plan and make financing decisions — like entering into term loan agreements or issuing bonds — accordingly,” the spokesperson.
- Slower e-commerce sales compelled Amazon to shut down or delay plans for over a dozen facilities. The soaring energy prices also impacted Amazon’s business significantly, as its shipping spending climbed 10% to $19.9 billion in Q3 2022.
- Amazon has frozen hiring for corporate roles in its retail business, shut down its Amazon Care telehealth service, closed most of its US call centers, and scaled back Amazon Scout.
- To cut costs, Amazon reduced its workforce in early 2023, reportedly by up to 10,000 employees.
- Amazon held $59 billion in cash and equivalents as of September 30.
- Price Action: AMZN shares traded higher by 0.82% at $86.52 in the premarket on the last check Wednesday.
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