Today’s headline story: Amazon secures $8 billion loan agreement
Amazon has announced it has reached agreement with lenders on an $8 billion unsecured loan.
The e-commerce and logistics giant announced that the term loan will mature in 364 days, with an option to extend for the same period. The funds are to be utilised for general corporate purposes.
In a statement issued to Reuters, Amazon said:
“Given the uncertain macroeconomic environment, over the last few months we have used different financing options to support capital expenditures, debt repayments, acquisitions, and working capital needs.”
Meanwhile, the company has also issued a memo concerning its financial review and planned redundancies.
Writing on Amazon’s website, CEO Andy Jassy said:
“This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years.”
He then went on to confirm 18,000 layoffs:
“Today, I wanted to share the outcome of these further reviews, which is the difficult decision to eliminate additional roles. Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles. Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and PXT organizations.”
In the same memo, Jassy admitted that Amazon had wished to make the scale of its redundancies known at a later time. However, it was decided to publish the news earlier after a member of staff had already leaked the info.
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