Billionaire Amazon founder Jeff Bezos is facing a backlash after advising Americans, struggling with inflation, to avoid major purchases such as homes and cars due to the possibility of an economic downturn in the coming months.
During an interview with CNN Business, Mr. Bezos advised Americans to stash some cash to avoid the pain that could come through 2023 if economic conditions worsen.
“Take some risk off the table. “If you’re thinking about buying a big screen TV, slow it down, keep that money and see what happens.” He also advised against buying new cars, appliances and homes.
Last month Mr Bezos suggested Americans should prepare for a “bat down hatch” ahead of a possible downturn, but his advice didn’t sit well with everyone.
of Phoebe Wall Howard Detroit Free Press “The auto industry, one of the major economic drivers of our country, has been battling supply chain hell for the past 3 years,” he pointed out.
“Jeff Bezos told CNN 11/15 people should stop buying cars. Note: Amazon specializes in auto campaigns, including Ford, Toyota, VW, Nissan,” he wrote.
Mike Elgan, a tech journalist, said the things Mr. Bezos suggested Americans stop buying — cars and houses — are some of the products you can’t buy on Amazon.
“Bezos urged people to put off spending on big-ticket items like new cars, televisions and appliances,” he wrote. “Translation: ‘Bezos urges people to put off spending on things they don’t buy on Amazon to save money on Amazon purchases.’
Mr Bezos delivered his advice on a heel The New York Times The report says Amazon plans to lay off approximately 10,000 employees from its Alexa, retail and human resources divisions, one of the largest mass layoffs in the company’s history.
The advisory also comes a week before Black Friday and Cyber Monday in the US, when shoppers can expect holiday deals and big-ticket purchases at bargain prices on Amazon. He’s not suggesting Americans hold off on their Black Friday shopping.
Black Friday will be a lucrative day for Mr Bezos – who will face the biggest strike and protest in the company’s history. Amazon workers in 15 countries are planning joint strikes in Brazil, Mexico, the United States, England, Spain, France, Belgium, Germany, Luxembourg, Italy, Poland, India, Bangladesh, the Philippines and Australia.
The striking workers are demanding better access to the workforce, better wages, improved Covid-19 safeguards, a reduced carbon footprint for the company and the shutdown of Amazon surveillance devices such as ring cameras.