It’s a dark time for the retail industry. Information was brought today that home goods chain Bed Bath & Beyond has “considerable doubts” about “Going his ability to continue as a concern” given the amount of losses. It was scooped up today that Everlane, another retailer, is cutting his 17% of corporate staff. Amazon, meanwhile, said Wednesday it plans to cut more than 18,000 jobs. All three retailers are suffering from a horrific economic environment. But Amazon’s predicament has been compounded over the past few years by the company’s decision to spend like a drunken sailor.
Just three years ago, Amazon was booming thanks to the pandemic boom in online shopping. For example, in 2020, the company generated $66 billion in cash from its operations, up 71% from his 2019 figure. This has significantly strengthened our balance sheet. Amazon ended his 2020 with his $84 billion in cash, offset by nearly $32 billion in debt. If managed carefully, her $52 billion net cash position should be well positioned to weather a recession comfortably. But the company’s CEO at the time, Jeff Bezos, accomplished nothing by being cautious. So he set out to expand with much of Amazon’s cash reserves, weakening the company just as the e-commerce market crashed.