Recently it was announced that Amazon would be laying off 17,000 employees in 2023. (Link to story.) Now Amazon has agreed to an $8 billion term loan to “help support capital expenditures, debt repayments, acquisitions, and working capital needs,” Amazon said in a statement to Reuters.
This move comes as a growing number of companies have been looking to cut costs and raise capital as fears over the future of the US economy grow.
Amazon’s loan will mature in 364 days with an option to extend for another 364 days.
This all comes as Amazon saw its shares drop about 50% in 2022, joining a growing number of companies that saw their stock price crash.
Amazon also has about $59 billion in long-term debt as of the third quarter of 2022. Not all news is bad for Amazon, as they had about $35 billion in cash or cash equivalents at the end of the third quarter of 2022.
Amazon saw huge growth with the 2020 pandemic as Americans, and people worldwide stayed home. Online shopping was seen as a safe option vs going into stores, and many turned to Amazon for a growing number of everyday items they typically would have gone to a local store for. Now though, many Americans have started to return to stores instead of waiting for Amazon to ship them their items.