Amazon.com Inc. gained as much as 15% on news that Chief Executive Officer Andy Jassy has embarked on a review of expenses, part of broader efforts to streamline the world’s largest e-commerce company.
Amazon said in a statement to Bloomberg News that its annual operating-plan review will have a particular focus on trimming expenses this year as it copes with a slowing economy. The Wall Street Journal reported earlier that the assessment was underway and that employees in certain divisions have been told to look for jobs elsewhere in the company because their teams are being suspended or shut down.
“Our senior leadership team regularly reviews our investment outlook and financial performance, including as part of our annual operating plan review, which occurs in the fall each year,” the Seattle-based company said in the statement. “As part of this year’s review, we’re of course taking into account the current macro-environment and considering opportunities to optimize costs.”
The news boosted a stock that was already up on positive inflation news. The latest data on consumer prices came in better than expected Thursday, easing concerns about Federal Reserve interest rate hikes.
Amazon shares rose as high as $98.69, marking their largest intraday gain since February. They had been down 48% this year, part of a rout that has hammered the biggest tech companies.
