Amazon, which as we all know has a turnover rate well over 100%, which has been on a relentless drive to buy up industrial real estate land and engaging in massive hiring sprees, just all of the sudden, in the midst of the golden age of WFH/online retailing, decided that they need to take a timeout and do some layoffs and hold off on further investments:
This is because of the independent, non AFL-CIO affiliated union that is emerging within their supply chain.
The FT spins it this way:
“Apple and Amazon caused a sharp intake of breath on Wall Street last night as they warned that supply chain challenges and rising costs were having an impact on their businesses.
Executives at the iPhone maker said the company could sustain a hit of up to $8bn in the current quarter from the headwinds associated with supply chain shortages and factory shutdowns in China, a reminder for western companies that the coronavirus pandemic is far from over.
Apple’s shares reversed gains made in the aftermath of the release of the company’s latest quarterly results once executives began detailing some of the challenges that lie ahead.
“Covid is difficult to predict,” said Tim Cook, Apple chief executive, on a call with analysts last night.
The comments followed what was a near-record quarter for Apple. Revenues rose 9 per cent to $97.3bn in the first three months of the year compared with the same period a year ago. That was well above the $94.1bn analysts had predicted. Net profits jumped 6 per cent to $25bn, making it Apple’s third most profitable quarter on record despite it not being a holiday period.
But is was the comments from Cook and Luca Maestri, Apple’s finance chief, that weighed on the stock, which is down nearly 2.5 per cent in pre-market trading.
Amazon shares are also lower ahead of the final trading session of the week. The online retailer recorded a first-quarter net loss of $3.8bn which included a $7.6bn loss related to the value of its stake in electric vehicle maker Rivian.
It blamed overexpansion and a slowdown in sales for the plunge into the red and said it expected growth to slow this year as the company faced ongoing supply chain challenges and higher costs.
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” said Andy Jassy, Amazon’s chief executive.
Amazon, which launched an unprecedented recruitment drive during the pandemic to help it cope with surging demand, said it was now overstaffed and had begun to cut positions.”
Notice note a peep about the union, but make no mistake, this is all about killing the movement.
They will intentionally fuck themselves in the short term to kill this wildcat union. Control over labor, total docility; that's the game. The most overvalued company in the world can sit out a few bad earnings calls as they strangle this thing.
This is class war, playing out in front of your very eyes.
Long live Chris Smalls and the ALU!
Edited for visibility.