American e-commerce company Amazon has secured a loan of $8 billion from DBS Bank, Mizuho Bank, and others. This loan which was secured in anticipation of market headwinds will mature on January 3, 2024 (a 364 days period) with the option to extend for another 364 days. In a filing with the US SEC, the company said the loan will be used for “general corporate purposes,” and according to a spokesperson, the loan is an addition to the various financing options that the company has embarked upon in recent months as plans to protect itself from the uncertain macroeconomic environment.
“Like all companies we regularly evaluate our operating plan and make financing decisions — like entering into term loan agreements or issuing bonds — accordingly. 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,” the company’s spokesperson said.
Like many other companies around the world, 2022 was a tough year for Amazon as a result of inflation, macroeconomic challenges, and the fear that a recession may happen soon. The company also spent billions of dollars doubling its fulfillment network during the Covid pandemic which is now proving to be a decision that had no long-term consideration.
There are reports that Amazon plans to reduce its workforce in 2023 by up to 10,000 workers, which will become the biggest layoff in the company’s history. The company was also forced to shut down/delay plans for some facilities as a result of the slowdown in e-commerce sales.
The company has paused hiring for corporate roles and last year shut down its telehealth service. Its market capitalization also fell below the 1 trillion-dollar mark since April 2020, and as of the time of writing this draft, the company’s market cap was $875.51 billion.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
